Liability and minimum funds

[Asterit]

Hi everyone!

I'm rather new here and have been looking over doing market exchanges for a while now, but a few things have always seemed to confuse me. I apologise if these questions are quite obvious to most of you.

My questions are as follows:

When you back and lay on a particular market, say using low stakes of £10 and you lay at say 2.0 and back at 2.1 using these stakes. Would the total being put down by me be £20 plus liability? So would I need this TOTAL amount in my account before even placing these bets down? Or is only £10 in total being used for this particular trade? Sorry if this question is slightly stupid.

Also as an additional thing, I'd like to ask, what would you recommend as a good starting point in terms of funds to get to a good start in the market? Simply put: How much money would you recommend starting within my account?

Thank you all for your time and I hope to stick around for a while

[weemac]

Hi Asterit,

The minimum amount you need in your account is the maximum you could lose if the largest-liability bet were to lose. So a lay first of £10 at 2.0 needs £10, and a back first of £10 at any price also needs £10, but they are in opposite directions so the maximum you could lose would be £10 - that's how much you need in your account. A lay at 2.50 and a back at 3.0 (or any price) would need £15 in your account.

As for bank size, if you're trading and not doing rash things, I'd say start with £50 or £100 and trade with a liability of say £10 at first. If the price went fairly dramatically against you, you'd only be risking a couple of pounds per trade. But less than £50 is perfectly possible if you just tread carefully.

[Asterit]

Thanks, that makes a lot of sense now

I will be starting small and gradually make my way upwards with any luck, but I know not to push these things and give them time. Your answer helps bunches (: