March 2008

Spread Betting on Rentokil Initial

So Rentokil Initial have succumb to shareholder pressure and brought in a new management team.

But how to spread bet on Rentokil?

We have some answers…

Q) Where can I Spread Bet on Rentokil?
Q) Where can I Trade for Free on Rentokil?
Q) How to Spread Bet on Rentokil?
Q) Where can I find Free Live Prices on Rentokil?
Q) Where can I find Free Rentokil Charts?  

How to Spread Bet on Rentokil Initial?

Lets say the Rentokil (June) spread is 101.6p - 102.4p with FinancialSpreads.com.

Therefore you can spread bet on Rentokil shares settling:

a) Above 102.4p, or
b) Below 101.6p

On the expiry date for this ‘June’ market, 17-Jun-08.

With UK equities spread trading, you trade in £x per penny, where a penny is 1p of Rentokil Initial share price movement.

For example, if your stake was £15 per penny and the Rentokil shares move 10p then that would be a £150 difference to your bottom line.

Rentokil Worked Spread Betting Example

Eg, let’s say, taking the above spread of 101.6p - 102.4p, that after your market analysis you think that the Rentokil shares will finish above 102.4p on 17-Jun-08.

Therefore you could buy at 102.4p for a stake of, let’s say, £10 per penny.

Your profit / loss is found by taking the difference between the final share price and the price you made the spread bet at, 102.4p, and then multiplying that by the stake per penny of share price movement.

So if the share price settles at 115p, then:

Your profit = (115.0p - 102.4p) x £10 per penny stake

Your profit = 12.6p x £10 per penny = £126 profit.

 

Of course, the markets don’t always moving according to plan. If the market didn’t move as predicted and had the Rentokil shares fallen to 90p, then you would have lost money on your spread trade.

Your loss = (90.0p - 102.4p) x £10 per penny stake

Your loss = -12.4p x £10 per penny = -£124 loss.

(Note prices quoted as of 31-Jan-08)

 

Good Luck

BD

Clean Financial - Spread Betting

Late UK Trading Update

As mentioned below, we’re always trying to provide you with new thoughts, fact and opinion. Each weekday we now offer a free ‘closing comments’ update on the UK markets as they close.

Eg: Today’s comment was:

“Going into the final half hour of trading the FTSE remains weak, trading near session lows.

“The market has been on the back foot for most of the day with a brief rally evaporating by 9:00 a.m. The biggest casualty has been insurer Admiral Group. Although pre-tax profits came in as expected, it was the outlook for the year ahead that did the damage.

“Schroders surprised the market with a better than expected 35% rise in annual profits and this has helped it top the leader board for the day so far. But again, the company recognises that the year ahead could be a tricky one. Despite today’s rally, with the share price languishing near 18-month lows, investors may continue to bide their time before showing any confidence in the financial and bank sector.

“The continued downbeat outlook for the year ahead is not doing the FTSE 100 any favours at the moment. Today’s slide has put it back to levels not seen since mid-February.

“Taking a step back and looking at the bigger picture for a second, both the UK and US indices are currently stuck in broad sideways ranges that have been in place for the past few weeks. At the moment these markets are trading near the bottom end of this range so what we really need to see over the next couple of days is some strength to start coming in. However, if the FTSE 100 slips lower and breaks below the February lows around 5650, the worry for many investors may be that the trap door has opened once again and worse is yet to come.”

For more, simply see our ‘Late Trading Update‘.

Good Luck

BD

Clean Financial - Spread Betting

Spread Betting Strategies Features

As always, we try to provide you with as much free spread betting and trading data as possible.

We’ve now added a new ‘Trading Features’ Section from industry professionals discussing various market opportunities, financial outlooks, spread betting growth areas and more. Topics include:

Trading Features Sample

If the credit crunch continues for much longer, many of the huge debt deals that companies had been expecting to offload via stock market floats could start to experience certain problems. A number of them will now be coming up for a rollover of their initial financing deals. In a dog eat dog environment it does not take much of an imagination to see a large number of these projects unwinding as financiers ask for their money back rather than risk another loan period and then turn around and pick the asset up as the desperate borrower flails around for an exit…more on this Private Equity comment >>

Good Luck!

DB