Spread betting has a way of making risk feel smaller than it is.
A few pounds per point doesn’t sound like much.
A slightly wider stop doesn’t feel dramatic.
And when a trade “looks good”, increasing size can feel almost reasonable.
But beneath the surface, spread betting is one of the clearest places to see a simple truth about trading:
You don’t control outcomes.
You don’t control markets.
You control risk — or you don’t trade professionally at all.
Why spread betting makes this lesson unavoidable
In spread betting, exposure is explicit. There’s no number of shares or contracts to hide behind. Every trade comes down to two things:
- £ per point
- How far the market can move against you
That simplicity is actually an advantage — if it’s handled correctly.
Professional traders don’t start by asking how many pounds per point they want to trade. They start by asking something quieter and far more important:
How much of my account am I prepared to lose if this trade is wrong?
Once that number is fixed, position size becomes a consequence — not a decision.
The risk calculation professionals use (even if they don’t write it down)
For spread betting, the thinking looks like this:
Account size × risk % = £ amount you are willing to lose
£ risk ÷ stop loss distance (in points) = £ per point
This isn’t a strategy.
It doesn’t predict anything.
It simply makes risk visible before the trade is placed.
Why the stop loss is the centre of everything
The stop loss is the only place where risk becomes real.
Entries can be improved.
Targets can be adjusted.
But the stop defines the maximum loss.
Without a stop, risk is vague and emotional.
With a stop, risk becomes measurable.
And once risk is measurable, it can be controlled.
The stop loss is not there to protect the trade.
It’s there to protect the account.
That distinction matters more than most traders realise.
A simple spread-betting example
Let’s say you’re spread betting Apple.
- Account size: £2,000
- Risk per trade: 1%
- Total £ risk: £20
- Stop loss distance: 5 points
Now the calculation becomes straightforward:
£20 ÷ 5 points = £4 per point
That’s it.
If Apple hits the stop, the loss is £20.
Not roughly £20.
Not hopefully £20.
Exactly £20.
If the stop needed to be wider — say 10 points — the £ per point would simply be smaller.
If the stop was tighter, the £ per point would increase.
What doesn’t change is the risk.
That consistency is where longevity comes from.
What this quietly removes from trading
This way of thinking removes some very common — and very costly — behaviours:
- Increasing size because a trade “looks strong”
- Widening stops to avoid being wrong
- Recovering losses by trading bigger
- Letting emotions decide exposure
Every trade is treated the same.
Good setups and bad outcomes coexist without damaging the account.
This is why professional systems focus on risk consistency before signal quality. Without controlled risk, even good systems fail.
A final thought
Most traders believe success comes from better entries.
In reality, survival comes from better limits.
If you define risk first, losses become survivable.
If losses are survivable, systems can work.
And if systems can work over time, results take care of themselves.
Before we talk about confirmation, signal quality, or system design in future Monday Notes, it’s worth anchoring this one principle:
You don’t control the market.
You don’t control the outcome.
You control the risk.
Thanks for reading.
These notes will continue every Monday — stay subscribed if this way of thinking resonates.
All the Best!
SystemsTraders Team
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