Where to Spread Bet on Talvivaara Mining?

You can spread bet on Talvivaara Mining with any of the following companies:

• Financial Spreads
• Tradefair
• Capital Spreads

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

Spread Betting on Talvivaara Mining

If you decide to invest in firms like Talvivaara Mining then one possibility could be to place a spread bet on the Talvivaara Mining share price.

If you were to look at the FinancialSpreads.com site, as of Friday, they were showing the Talvivaara Mining Rolling Daily market at 211.1p – 212.7p. Therefore, you can spread bet on the Talvivaara Mining shares:

• Rising higher than 212.7p, or
• Falling lower than 211.1p

Whilst financial spread betting on UK shares you trade in £x per penny. As a result, if you choose to have a stake of £10 per penny and the Talvivaara Mining share price moves 5p then that would make a difference to your bottom line of £50. £10 per penny x 5p = £50.

Rolling Daily Shares Markets

One important thing to note is that this is a Rolling Daily Market and so unlike a futures market, there is no closing date. If you decide to leave your trade open at the end of the day, it simply keeps rolling over into the next trading session.

If you do let your bet roll over into the next day and are spread betting on the market to:

• Move up – then you usually pay a small overnight financing fee, or
• Move down – then a small payment is often credited to your account

You can find more on Rolling Daily Markets, as well as a fully worked example, in our feature Rolling Daily Spread Betting.

Talvivaara Mining Rolling Daily Shares Spread Betting Example

If we consider the spread of 211.1p – 212.7p and assume that:

• you have analysed the equities market, and
• you feel that the Talvivaara Mining shares will go higher than 212.7p

then you might choose to go long of the market at 212.7p for a stake of £15 per penny.

Therefore, you make a profit of £15 for every penny that the Talvivaara Mining shares increase and move above 212.7p. On the other hand, you will lose £15 for every penny that the Talvivaara Mining market goes lower than 212.7p.

Looked at another way, should you buy a spread bet then your profit/loss is worked out by taking the difference between the settlement price of the market and the price you bought the market at. You then multiply that price difference by the stake.

With this in mind, if after a few days the share price started to increase then you might think about closing your spread bet to secure your profit.

Taking this a step further, if the market did go up then the spread, determined by the spread betting company, might change to 220.1p – 221.7p. You would close your position by selling at 220.1p. Accordingly, with the same £15 stake your profit would be:

P&L = (Settlement Price – Opening Price) x stake
P&L = (220.1p – 212.7p) x £15 per penny stake
P&L = 7.4p x £15 per penny stake
P&L = £111.00 profit

Trading equities, by spread betting or otherwise, is not simple. In this example, you had bet that the share price would rise. Of course, it can also fall.

If the Talvivaara Mining stock had started to fall then you might choose to close your spread bet in order to restrict your losses.

So if the market dropped to 206.3p – 207.9p then you would sell back your position at 206.3p. As a result, your loss would be:

P&L = (Settlement Price – Opening Price) x stake
P&L = (206.3p – 212.7p) x £15 per penny stake
P&L = -6.4p x £15 per penny stake
P&L = -£96.00 loss

Note: Talvivaara Mining Rolling Daily equities market taken as of 11-Nov-11.

Talvivaara Mining Spread Betting – More Details

For more information on trading Talvivaara Mining, also see Talvivaara Mining 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.