Posts from — July 2011

Where to Spread Bet on the Spain 35?

Investors are able to spread bet on the Spain 35 stock market index with these spread betting firms:

• CMC Markets
• GFT
• IG Index

However, you should note that this spread betting market may also be available with other Spread Trading Companies.

Spain 35 Spread Betting – More Information

For more details about speculating on the Spain 35 index, also see Spain 35 Spread Betting.

How to Spread Bet on Indices – Spain 35 Rolling Daily

As with a wide variety of markets, you can speculate on stock market indices, like the Spain 35, to either rise or fall.

If you were to look at the IG Index spread trading website, as of Friday, they were showing the Spain 35 Rolling Daily market at 9574.0 – 9582.0. This means you could spread bet on the Spain 35 index:

• Increasing above 9582.0, or
• Decreasing below 9574.0

Whilst financial spread betting on the Spain 35 index you trade in £x per point. As a result, if your stake was £2 per point and the Spain 35 moves 15 points then that would make a difference to your P&L of £30. £2 per point x 15 points = £30.

Rolling Daily Indices Markets

One thing to note is that this is a Rolling Daily Market which means that in contrast with futures markets, there is no closing date. If you decide to leave your trade open at the end of the day, it just rolls over into the next session.

Should your trade roll over, if you are speculating that the market will:

• Go up – then you will often be charged a small financing fee, or
• Go down – then a small payment is often credited to your account

If you would like a fully worked example then see Rolling Daily Spread Betting.

Spain 35 Rolling Daily Index Spread Trading Example

So, if we consider the spread of 9574.0 – 9582.0 and assume:

• you have completed your market analysis, and
• you feel that the Spain 35 index will increase and move higher than 9582.0

then you might choose to go long of the market at 9582.0 and invest, for example, £1 per point.

So, you win £1 for every point that the Spain 35 index pushes above 9582.0. Nevertheless, it also means that you will lose £1 for every point that the Spain 35 market moves lower than 9582.0.

Put another way, if you were to ‘Buy’ a spread bet then your P&L is found by taking the difference between the final price of the market and the initial price you bought the market at. You then multiply that difference in price by the stake.

With this in mind, if after a few trading sessions the index started to increase then you might think about closing your spread bet so that you can lock in your profit.

So if the market rose then the spread, determined by the spread betting company, could be adjusted to 9697.0 – 9705.0. You would close/settle your spread bet by selling at 9697.0. As a result, with the same £1 stake your profit would come to:

Profits (or losses) = (Settlement Level – Initial Level) x stake

Profits (or losses) = (9697.0 – 9582.0) x £1 per point stake

Profits (or losses) = 115.0 x £1 per point stake

Profits (or losses) = £115.00 profit

Speculating on indices is not always simple. With the above, you had bet that the index would increase. Naturally, it could fall.

If the Spain 35 market dropped then you could close your trade in order to limit your losses.

Should the spread drop to 9452.6 – 9460.6 you would sell back your position at 9452.6. If so, your loss would be calculated as:

Profits (or losses) = (Settlement Level – Initial Level) x stake

Profits (or losses) = (9452.6 – 9582.0) x £1 per point stake

Profits (or losses) = -129.4 x £1 per point stake

Profits (or losses) = -£129.40 loss

Note: Spain 35 Rolling Daily spread quoted as of 29-Jul-11.

Spread Betting: Accounts and Offers

For a detailed spread betting comparison, including spread sizes, the spread betting markets on offer and account services, please see Spread Betting Accounts.

In addition, for details on current spread betting offers from some of the leading financial spread betting companies, also see Financial Spread Betting Offers.

Financial spread betting involves a high level of risk to your trading capital and can result in losses that are greater than your initial stake. Please ensure that it fits your investment objectives as it may not be suitable for all types of investor. You should only speculate with money that you can afford to lose. Before trading, please ensure you fully appreciate the risk and where appropriate seek independent advice.

Where to Spread Bet on Enterprise Inns?

You can spread bet on Enterprise Inns with any of the following companies:

• Financial Spreads
• Inter Trader
• IGIndex

Although note that you can also spread bet with other Spread Betting Companies.

Spread Betting on Enterprise Inns

If an investor wants to speculate on companies like Enterprise Inns then one solution is a spread bet on the Enterprise Inns share price.

Looking at the FinancialSpreads.com site, as of Friday, they were showing the Enterprise Inns Rolling Daily market at 56.6p – 57.0p. Therefore, you can spread bet on the Enterprise Inns share price:

• Going above 57.0p, or
• Going below 56.6p

When spread betting on FTSE 350 equities you trade in £x per penny. So, if your stake was £15 per penny and the Enterprise Inns share price changes by 5p then that would make a difference to your P&L of £75. £15 per penny x 5p = £75.

Rolling Daily Shares Markets

One important thing to note is that this is a Rolling Daily Market and so there is no settlement date for this market. If your position is still open at the end of the day, it will simply roll over to the next session.

If you allow your bet to roll over and are spread betting on the market to:

• Increase – then you will normally be charged a small financing fee, or
• Decrease – then a small payment is normally credited to your account

To see a fully worked example read Rolling Daily Spread Betting.

Enterprise Inns Rolling Daily Shares Spread Betting Example

If you consider the above spread of 56.6p – 57.0p and assume:

• you have done your research, and
• you feel that the Enterprise Inns share price looks like it will go higher than 57.0p

then you might decide that you want to buy a spread bet at 57.0p for a stake of £25 per penny.

Therefore, you make a profit of £25 for every penny that the Enterprise Inns shares push above 57.0p. On the other hand, you will make a loss of £25 for every penny that the Enterprise Inns market moves below 57.0p.

Put another way, if you were to ‘Buy’ a spread bet then your profits (or losses) are found by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that price difference by your stake.

With this in mind, if after a few sessions the share price started to move upwards then you could choose to close your position in order to guarantee your profit.

Taking this a step further, if the market rose then the spread, set by the spread trading company, might change to 60.4p – 60.8p. You would close your spread bet by selling at 60.4p. Accordingly, with the same £25 stake you would make:

Profit = (Closing Level – Initial Level) x stake
Profit = (60.4p – 57.0p) x £25 per penny stake
Profit = 3.4p x £25 per penny stake
Profit = £85.00 profit

Speculating on shares, whether by spread betting or not, is not simple. In this case, you had bet that the share price would increase. Nevertheless, it can also decrease.

If the Enterprise Inns stock dropped then you could close your spread bet to limit your losses.

Should the spread pull back to 53.0p – 53.4p then this means you would settle your spread bet by selling at 53.0p. Therefore, you would make a loss of:

Loss = (Closing Level – Initial Level) x stake
Loss = (53.0p – 57.0p) x £25 per penny stake
Loss = -4.0p x £25 per penny stake
Loss = -£100.00 loss

Note: Enterprise Inns Rolling Daily spread betting market correct as of 29-Jul-11.

Enterprise Inns Spread Betting – More Details

For more information on trading Enterprise Inns, also see Enterprise Inns Spread Betting.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Equity markets are floundering in early trade after disappointing news from Washington overnight.

It’s been a less than inspiring start to the month’s final trading session after the expected vote on Republican plans to save the US from default was withdrawn late last night.

Banks are once again bearing the brunt of the losses with yesterday’s bargain hunting failing to offer any lasting momentum.

There’s a degree of surprise amongst some market participants that the sell-off hasn’t been more pronounced, with the FTSE 100 refusing to move below the 5,800 level once again.

There is, however, a notable degree of support coming through from heavyweight Vodafone, up 5% on the back of a special dividend being declared. Pearson is also cheering sentiment on the back of their results.

Looking across the Atlantic, there is a raft of economic news due in the afternoon session in addition to several high profile corporate announcements.

Highlights include the University of Michigan consumer sentiment index, Q2 GDP and personal consumption data. On the earnings front, look for numbers from Merck and Chevron.

The Dow 30 is currently eyeing a start below the 12,200 level, for the first time in a month, but future market direction relies on what comes from Washington between now and Sunday night.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Financial Market Comments from Christopher Beauchamp, Research Analyst, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Bargain hunters are starting to pick off some cheap stocks after the recent spate of selling, but progress from Washington will continue to dominate sentiment.

The FTSE 100 has now dropped around 150 points from Tuesday’s highs. This, combined with the fact that there are now some signs of progress in the US debt ceiling negotiations, has seen a general temptation to start moving back into UK stocks around the fringes.

The banks, which have been heavily sold down of late, are providing a modicum of support.

Elsewhere the upside has been generally limited to the likes of BT Group and BAE who both reported better-than-expected numbers this morning, in turn fuelling selective demand.

The brinkmanship we’re seeing across the Atlantic still dominates the agenda.

With a vote expected on the Boehner plan later today, it’s going to be difficult to find much fresh direction.

With this in mind, US pending home sales, weekly jobless claims and another flood of high profile earnings from across the Atlantic are unlikely to be anything more than a short term distraction for the majority.

The risk of a US default may be retreating but we’re by no means out of the woods yet.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Financial Market Comments from Yusuf Heusen, Senior Sales Trader, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Mid-way through the week and there’s little change in the focus for traders.

Wednesday’s trade has started on something of a dull note, with few wanting to build exposure in the market in the current climate.

The US debt ceiling impasse is certainly casting its shadow across the shares spread betting markets right now and it really does seem as if a resolution won’t be seen before the 11th hour.

Financial stocks have been bearing the brunt of the sell-off in London with Barclays and Lloyds both struggling. With little economic data due for release in the coming hours, there’s little reason to believe we’re going to see much more activity in the near-term.

CBI data due at 11am may offer some momentum for FTSE 100 shares, but there’s only one real story on the agenda right now.

With senior ratings agency staff due to appear before congress later in the day, this may offer further direction on the likelihood of a downgrade for the US, so expect this to be closely followed.

US durable goods order data is also set for release ahead of the Wall Street open, and there’s the threat here that contraction could be seen.

Yet again, this would give traders good reason to maintain their bearish stance. However, when we do eventually get some definitive word from Washington, and the ratings agencies, this bout of range-bound trading will soon come to an end.

We’re currently calling US stocks to open lower with the Dow Jones expected to open down 10 at 12,491.

Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.

Financial Market Comments from Ben Critchley, Sales Trader, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.