Where to Spread Bet on Murray Income Trust?

You can spread bet on Murray Income Trust 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 Murray Income Trust

Should you want to invest in firms such as Murray Income Trust then one solution is to spread trade on the Murray Income Trust share price.

If an investor was to look at the FinancialSpreads spread trading site, as of Friday, they were showing the Murray Income Trust Rolling Daily market at 608.2p – 611.3p. Therefore, an investor could spread trade on the Murray Income Trust share price:

• Increasing higher than 611.3p, or
• Decreasing lower than 608.2p

When spread trading on UK shares you trade in £x per penny. Therefore, if you decided to invest £6 per penny and the Murray Income Trust shares move 5p then there would be a difference to your P&L of £30. £6 per penny x 5p = £30.

Rolling Daily Shares Markets

One important thing to note is that this is a Rolling Daily Market and so it does not have a set closing date. Therefore, if you decide not to close your trade by the end of the day, it will roll over to the next session.

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

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

You can learn more in our feature Rolling Daily Spread Betting.

Murray Income Trust Rolling Daily Shares Spread Betting Example

Now, if we think about the spread of 608.2p – 611.3p and make the assumptions that:

• you have analysed the equities market, and
• it leads you to feel that the Murray Income Trust share price looks like it will move higher than 611.3p

then you might buy at 611.3p for a stake of, let’s say, £3 per penny.

So, you win £3 for every penny that the Murray Income Trust shares rise above 611.3p. Having said that, it also means that you will lose £3 for every penny that the Murray Income Trust market falls lower than 611.3p.

Looked at another way, if you were to 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 difference in price by the stake.

Therefore, if after a few sessions the share price rose then you might consider closing your spread bet in order to lock in your profit.

Taking this a step further, if the market rose then the spread, set by the spread trading company, might change to 643.4p – 646.5p. You would close your spread bet by selling at 643.4p. As a result, with the same £3 stake:

Your profits (or losses) = (Closing Level – Initial Level) x stake
Your profits (or losses) = (643.4p – 611.3p) x £3 per penny stake
Your profits (or losses) = 32.1p x £3 per penny stake
Your profits (or losses) = £96.30 profit

Speculating on equities, whether by spread betting or otherwise, is not always straightforward. In this example, you had bet that the share price would rise. Of course, the share price might go down.

If the Murray Income Trust shares spread betting market began to fall then you could close your spread bet to limit your losses.

Should the market drop to 582.9p – 586.0p you would settle your spread bet by selling at 582.9p. If so, your loss would be calculated as:

Your profits (or losses) = (Closing Level – Initial Level) x stake
Your profits (or losses) = (582.9p – 611.3p) x £3 per penny stake
Your profits (or losses) = -28.4p x £3 per penny stake
Your profits (or losses) = -£85.20 loss

Note: Murray Income Trust Rolling Daily spread betting market quoted as of 01-Jun-12.

Murray Income Trust Spread Betting – More Details

For more information on trading Murray Income Trust, also see Murray Income Trust 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.