Where to Spread Bet on Yule Catto?

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

• Financial Spread
• IG Index
• Tradefair

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

Yule Catto Spread Betting – More Details

For more information on trading Yule Catto, also see Yule Catto Spread Betting.

Spread Betting on Yule Catto

If an investor decides to invest in UK listed companies such as Yule Catto then one solution could be to spread bet on the Yule Catto share price.

If an investor was to look at the Capital Spreads site, as of Friday, they were showing the Yule Catto Rolling Daily market at 249.6p – 250.9p. This means an investor could spread trade on the Yule Catto shares:

• Increasing above 250.9p, or
• Decreasing below 249.6p

Whilst spread betting on FTSE 350 equities you trade in £x per penny. Therefore, if you risked £20 per penny and the Yule Catto shares move 5p then that would alter your profits (or losses) by £100. £20 per penny x 5p = £100.

Rolling Daily Shares Markets

Be aware that this is a Rolling Daily Market which means that it does not have a settlement date. If your trade is still open at the end of the trading day, it will roll over to the next session.

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

• Move up – then you will normally be charged a small financing fee, or
• Move down – then a small payment will usually be credited to your account

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

Yule Catto Rolling Daily Equities Spread Trading Example

Now, if we think about the spread of 249.6p – 250.9p and make the assumptions that:

• you have analysed the equities market, and
• you think that the Yule Catto shares look like they will move higher than 250.9p

then you might decide that you want to buy a spread bet at 250.9p for a stake of, for example, £10 per penny.

With such a bet you win £10 for every penny that the Yule Catto shares increase and go above 250.9p. Of course, you will lose £10 for every penny that the Yule Catto market goes lower than 250.9p.

Thinking of this in a slightly different way, if you buy a spread bet then your profits (or losses) are calculated 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 your stake.

Therefore, if after a few trading sessions the shares started to increase then you might want to close your trade and therefore guarantee your profits.

As an example, if the market increased then the spread, set by the spread betting company, might move up to 259.7p – 261.0p. You would settle/close your trade by selling at 259.7p. So, with the same £10 stake you would make:

Profits (or losses) = (Settlement Price – Opening Price) x stake
Profits (or losses) = (259.7p – 250.9p) x £10 per penny stake
Profits (or losses) = 8.8p x £10 per penny stake
Profits (or losses) = £88.00 profit

Trading shares, whether by spread betting or otherwise, doesn’t always work out as you would have liked. In this case, you wanted the share price to go up. Naturally, the share price might fall.

If the Yule Catto share price had started to drop then you might decide to settle/close your spread bet in order to limit your losses.

So if the market dropped to 240.9p – 242.2p you would close your trade by selling at 240.9p. This would result in a loss of:

Profits (or losses) = (Settlement Price – Opening Price) x stake
Profits (or losses) = (240.9p – 250.9p) x £10 per penny stake
Profits (or losses) = -10.0p x £10 per penny stake
Profits (or losses) = -£100.00 loss

Note – Yule Catto Rolling Daily market accurate as of 16-Mar-12.

Spread Betting Account Offers

If you are looking to open a spread betting account then for the latest spread betting offers please see Spread Betting Offers.

For a more detailed look at the spread betting markets, spread sizes and account services offered by a range of spread betting companies also see Spread Betting Account.

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.