Hello, I'm new to spread betting and dipping my toes in the water slowly. I have been looking at the FTSE and its recent volatility. It currently stands at around 5,500 points. A hypothetical question is the following
I fund my account £ per point ie 5,500
I 'buy' £1 per point
I enter a limit of 100 points
My assumption is that I won't lose any money (unless the FTSE remains permanently lower!) because I have funded £ per FTSE point, and that when the FTSE rises to 5,600 (ie current level plus 100 points) then the position will automatically close.
Is my assumption correct?
Thanks
Steve