This flexibility allows retail traders to take advantages in markets they would otherwise not have access to and means the account caters for budgets of all sizes. Rather than being priced out of the market or having to put a dicey amount of your trading capital at risk to enter a position, with a spread betting account you can buy just a fraction of a high-value stock or commodity and benefit proportionally. On a similar note, some assets have prices going into the thousands of pounds for just a single unit. Never put at risk more than your strategy dictates and certainly not any amount that you cannot afford to lose. For this reason (and many others) traders should rely on back-tested strategies, effective software and calculated risk management. It is critical to be aware that whilst leveraging your position can greatly magnify your profits, if used recklessly, it can do likewise to your losses. Through leveraging your trade you gain full exposure but for the price of just a small initial deposit (the margin). With a spread betting account your are able to borrow capital from your broker in order to take make your position size larger than your trading balance would allow.
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