Where to Spread Bet on Telecom Plus?

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

• Financial Spread
• Inter Trader
• IG Index

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

Spread Betting on Telecom Plus

If an investor decides to invest in UK companies such as Telecom Plus then one solution could be spread betting on the Telecom Plus share price.

Looking at the Capitalspreads spread betting site, as of Friday, they were showing the Telecom Plus Rolling Daily market at 831.0p – 834.0p. This means you could spread trade on the Telecom Plus share price:

• Rising above 834.0p, or
• Falling below 831.0p

Whilst making a spread bet on UK equities you trade in £x per penny. So, if you chose to have a stake of £10 per penny and the Telecom Plus share price changes by 5p then that would make a difference to your P&L of £50. £10 per penny x 5p = £50.

Rolling Daily Equities Markets

Be aware that this is a Rolling Daily Market which means that there is no preset closing date for this market. 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 allow your position to roll over and are spread betting on the market to:

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

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

Telecom Plus Rolling Daily Shares Trading Example

So, if you think about the spread of 831.0p – 834.0p and assume:

• you have done your analysis, and
• you think that the Telecom Plus share price will increase and move above 834.0p

then you might decide to go long of the market at 834.0p and invest, let’s say, £5 per penny.

With such a spread bet you win £5 for every penny that the Telecom Plus shares go higher than 834.0p. Of course, you will make a loss of £5 for every penny that the Telecom Plus market falls lower than 834.0p.

Put another way, if you were to buy a spread bet then your profit/loss is calculated by taking the difference between the settlement price of the market and the initial price you bought the spread at. You then multiply that difference in price by your stake.

As a result, if after a few trading sessions the share price started to increase then you might want to close your spread bet in order to lock in your profit.

Therefore, if the market moved up then the spread might move to 856.9p – 859.9p. You would settle your position by selling at 856.9p. Accordingly, with the same £5 stake:

Your profit / loss = (Settlement Price – Opening Price) x stake
Your profit / loss = (856.9p – 834.0p) x £5 per penny stake
Your profit / loss = 22.9p x £5 per penny stake
Your profit / loss = £114.50 profit

Trading shares, whether by spread trading or otherwise, is not always easy. With this example, you had bet that the share price would go up. However, the share price might go down.

If the Telecom Plus shares had started to fall then you might choose to close your spread bet in order to limit your losses.

If the spread fell to 809.0p – 812.0p then you would sell back your position at 809.0p. Therefore, you would make a loss of:

Your profit / loss = (Settlement Price – Opening Price) x stake
Your profit / loss = (809.0p – 834.0p) x £5 per penny stake
Your profit / loss = -25.0p x £5 per penny stake
Your profit / loss = -£125.00 loss

Note – Telecom Plus Rolling Daily spread betting price taken as of 15-Jun-12.

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.