Where to Spread Bet on ITV?

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

• Financial Spreads
• Inter Trader
• Capital Spreads

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

Spread Betting on ITV

If you are looking to invest in UK listed companies like ITV then one possibility could be to place a spread bet on the ITV share price.

If an investor was to look at the Capital Spreads trading site, as of Friday, they were showing the ITV Rolling Daily market at 87.8p – 88.2p. As a result, you could spread bet on the ITV share price:

• Rising higher than 88.2p, or
• Falling lower than 87.8p

When financial spread trading on FTSE 350 equities you trade in £x per penny. As a result, if you choose to have a stake of £15 per penny and the ITV share price moves 5p then there would be a difference to your profit/loss of £75. £15 per penny x 5p = £75.

Rolling Daily Equities Markets

Be aware that this is a Rolling Daily Market and so there is no preset closing date for this market. If your trade is open at the end of the day, it will roll over to the next trading day.

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

• Rise – then you will be charged a small overnight financing fee, or
• Fall – then you will usually receive a small credit to your account

For more information on Rolling Daily Markets, and a fully worked example, please see Rolling Daily Spread Betting.

ITV Rolling Daily Shares Spread Betting Example

So, if you think about the above spread of 87.8p – 88.2p and assume that:

• you have analysed the markets, and
• you feel that the ITV shares look like they will increase and go above 88.2p

then you could decide that you are going to buy at 88.2p for a stake of £20 per penny.

Therefore, you make a profit of £20 for every penny that the ITV shares rise higher than 88.2p. Having said that, you will make a loss of £20 for every penny that the ITV market decreases below 88.2p.

Thinking of this in a slightly different way, if you buy a spread bet then your profits (or losses) are found by taking the difference between the final price of the market and the initial price you bought the spread at. You then multiply that difference in price by the stake.

If after a few trading sessions the share price started to move upwards then you could choose to close your spread bet so that you can lock in your profit.

Taking this a step further, if the market did go up then the spread, set by the spread trading company, might change to 93.3p – 93.7p. To close your trade you would sell at 93.3p. As a result, with the same £20 stake your profit would be:

Profit / loss = (Closing Price – Opening Price) x stake
Profit / loss = (93.3p – 88.2p) x £20 per penny stake
Profit / loss = 5.1p x £20 per penny stake
Profit / loss = £102.00 profit

Trading shares, whether by spread trading or otherwise, may not go to plan. With this example, you had bet that the share price would go up. Of course, it can also fall.

If the ITV shares began to drop then you might choose to close your trade to limit your losses.

So if the spread pulled back to 83.8p – 84.2p then this means you would settle your spread bet by selling at 83.8p. If so, your loss would be calculated as:

Profit / loss = (Closing Price – Opening Price) x stake
Profit / loss = (83.8p – 88.2p) x £20 per penny stake
Profit / loss = -4.4p x £20 per penny stake
Profit / loss = -£88.00 loss

Note – ITV Rolling Daily spread betting price accurate as of 02-Mar-12.

ITV Spread Betting – More Details

For more information on trading ITV, also see ITV 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.