Where to Spread Bet on William Hill?

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

• Financial Spread
• Tradefair
• IGIndex

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

Spread Betting on William Hill

If you are looking to speculate on companies like William Hill then one option could be to place a spread bet on the William Hill share price.

Looking at the Tradefair site, as of Friday, they were showing the William Hill Rolling Daily market at 279.8p – 280.8p. As a result, you can spread trade on the William Hill shares:

• Increasing higher than 280.8p, or
• Decreasing lower than 279.8p

When making a spread bet on FTSE 350 equities you trade in £x per penny. So, if you invest £20 per penny and the William Hill share price changes by 5p then that would change your profits (or losses) by £100. £20 per penny x 5p = £100.

Rolling Daily Shares Markets

One important thing to note is that this is a ‘Rolling Daily Market’ and therefore it does not have a closing date. As a result, if your trade is still open at the end of the trading day, it just rolls over into the next day.

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

• Move higher – then you will often be charged a small financing fee, or
• Move lower – then you will often receive a small payment to your account

To learn more about Rolling Daily Markets please see Rolling Daily Spread Betting.

William Hill Rolling Daily Shares Trading Example

So, if you consider the spread of 279.8p – 280.8p and assume:

• you have done your analysis of the markets, and
• it leads you to think that the William Hill share price is likely to increase and go higher than 280.8p

then you may buy at 280.8p for a stake of £10 per penny.

So, you make a profit of £10 for every penny that the William Hill shares go above 280.8p. Having said that, it also means that you will lose £10 for every penny that the William Hill market decreases below 280.8p.

Thinking of this in a slightly different way, should you ‘Buy’ a spread bet then your profits (or losses) are worked out by taking the difference between the settlement price of the market and the initial price you bought the spread at. You then multiply that price difference by your stake.

With this in mind, if after a few hours the stock moved higher then you might want to close your spread bet and therefore guarantee your profits.

As an example, should the market rise, the spread, set by the spread betting company, could change to 289.9p – 290.9p. In order to close your trade you would sell at 289.9p. Therefore, with the same £10 stake:

Profits (or losses) = (Closing Level – Initial Level) x stake
Profits (or losses) = (289.9p – 280.8p) x £10 per penny stake
Profits (or losses) = 9.1p x £10 per penny stake
Profits (or losses) = £91.00 profit

Speculating on equities, by spread trading or otherwise, can go against you. In this case, you had bet that the share price would increase. Nevertheless, it can also fall.

If the William Hill share price had started to drop then you might decide to settle/close your spread bet to stop any further losses.

Should the spread betting market drop to 270.3p – 271.3p then this means you would close your trade by selling at 270.3p. If so, your loss would be calculated as:

Profits (or losses) = (Closing Level – Initial Level) x stake
Profits (or losses) = (270.3p – 280.8p) x £10 per penny stake
Profits (or losses) = -10.5p x £10 per penny stake
Profits (or losses) = -£105.00 loss

Note – William Hill Rolling Daily market quoted as of 22-Jun-12.

William Hill Spread Betting – More Details

For more information on trading William Hill, also see William Hill 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.