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Smaller bet sizes on shares with high prices


anders

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I appreciate there must be reasons for having minimum bet sizes, although I'll admit I don't know the logic behind it. However, is it really necessary to make the minimum bet size for some shares over £10,000? I'd be interested in taking positions on the likes of Amazon, but not with such a huge bet.

 

Here's a few examples, note: the minimum bet on Samsung is 59 times that of the minimum bet for Taylor Wimpey.

 

Share Min per point Price Min bet size Multiple of top
Samsung Electronics Co Ltd - GDR 0.1 111525 £11,152.50  
Amazon.com Inc 0.1 106903 £10,690.30 1.0
FTSE 100 1 7440.6 £7,440.60 1.5
Siemens AG 0.5 11627 £5,813.50 1.9
AstraZeneca PLC 1 4317 £4,317.00 2.6
Facebook Inc 0.24 17756 £4,261.44 2.6
Apple Inc 0.24 15414 £3,699.36 3.0
Diageo PLC 1 2430.5 £2,430.50 4.6
Royal Dutch Shell PLC - A (LSE) 1 2094.2 £2,094.20 5.3
Volkswagen AG 0.1 13649 £1,364.90 8.2
BP PLC 1 445.05 £445.05 25.1
Snap Inc 0.24 1326.3 £318.31 35.0
Taylor Wimpey PLC 1 188.49 £188.49 59.2
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Hi   I don't know what I'm missing here but this is just not so,

 

Amazon

The min bet size is 0.1

the min stop is £5.00

the margin required is £500.

 

and to prove it I put a bet on (20 seconds), you owe me £18 by the way :)

 

Obviously if you wanted to buy 1 share, that would cost minimum £10,000ish.

 

 

 

 

am2.PNG

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Hi , I believe my Maths is correct. When betting £0.1 per point on Amazon, the total bet size is as I laid out. If I place that bet, then a mere 1% move in share price costs/makes me ~£100 (i.e. 1% of ~£10,000). There's no way for me to place a sensibly sized bet, relative to my portfolio and preferred risk level.

 

I'd like to be able to place say a £1000 bet, with a 10% stop loss, limiting my potential losses to ~£100.

 

The stop loss is not an issue. 50 points (~0.05%) is closer than I'd ever need. Bets with a stop loss that close will normally get stopped out almost immediately.

 

(One Amazon share wouldn't cost $10,000, the share price is around $1,000.)

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HI   sorry, you are quite right amazon at $1000, I managed to chuck in an extra zero.

I'm still not sure how you are trying to play this, spread bet/CFD or buying 1 share for investment. If buying a share you are stuck with it until you sell it, there is no stop loss (sell it). If SBing it then you can increase your bet size and stop loss to whatever.

 

I don't recognise the table you posted in the first post, I have never seen FTSE100  minimum bet size £7440. I know that's not real. If IG have produced this it needs to be amended or explained.

 

That pic in my last post was a live account bet, the min was £1, the min stop was about 50 and the margin required was about £500 and I think the spread was about 15. I only did it to see what would happen and closed within 30 sec. There is no £10,000 min bet on SB.

 

Cheers.

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Morning , I'm using spread sets.

 

I produced the table just give a few examples of the differences. Perhaps my terminology is wrong. If on my first table, I renamed "min bet size" to "max loss on a long position", is that clearer? For example, I place a long bet of £1 per point on share X, and it has a price of 10,000 points. Here are the potential losses:

 

Share X Price Points fall % Fall Loss at £1 per point
10000 0 0 £0.00
9900 100 1% £100.00
9000 1000 10% £1,000.00
5000 5000 50% £5,000.00
0 10000 100% £10,000.00

 

To rephrase my questions:

  1. What determines the minimum £ per point bet for stocks?
  2. Why can't I place a bet of 0.01 per point on something like Amazon?

Q2 is my suggestion, i.e. allow smaller per point bets, on shares that have very high prices.

 

Thanks.

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