Where to Spread Bet on Evraz?
You can spread bet on Evraz with any of the following companies:
Although note that you can also spread bet with other Spread Betting Companies.
Spread Betting on Evraz
If an investor is looking to invest in UK listed companies such as Evraz then one possibility could be to place a spread bet on the Evraz share price.
If you were to look at the Capital Spreads website, as of Friday, they were showing the Evraz Rolling Daily market at 270.0p – 271.0p. As a result, you could spread trade on the Evraz share price:
- Rising above 271.0p, or
- Falling below 270.0p
Whilst financial spread trading on UK equities you trade in Â£x per penny. As a result, if you invest Â£20 per penny and the Evraz shares move 5p then that would alter your P&L by Â£100. Â£20 per penny x 5p = Â£100.
Rolling Daily Shares Markets
Note that this is a Rolling Daily Market and therefore unlike a futures market, there is no settlement date. If you decide to leave your trade open at the end of the day, it will roll over to the next session.
Should your spread bet roll over, if you are speculating that the market will:
- Increase – then you will be charged a small overnight financing fee, or
- Decrease – then a small payment is normally credited to your account
Our article Rolling Daily Spread Betting goes into more detail about Rolling Daily Markets and includes a fully worked example.
Evraz Rolling Daily Shares Spread Trading Example
Now, if we think about the spread of 270.0p – 271.0p and assume that:
- you have analysed the markets, and
- you think that the Evraz share price is likely to increase and move above 271.0p
then you might choose to buy a spread bet at 271.0p and risk, for the sake of argument, Â£10 per penny.
So, you win Â£10 for every penny that the Evraz shares push higher than 271.0p. Having said that, such a bet also means that you will lose Â£10 for every penny that the Evraz market goes lower than 271.0p.
Thinking of this in a slightly different way, if you were to â€˜Buyâ€™ a spread bet then your P&L is calculated by taking the difference between the final price of the market and the price you bought the spread at. You then multiply that price difference by the stake.
With this in mind, if after a few sessions the shares moved higher then you might want to close your trade so that you can lock in your profit.
Taking this a step further, if the market rose then the spread, set by the spread trading firm, might move up to 280.9p – 281.9p. In order to close/settle your position you would sell at 280.9p. As a result, with the same Â£10 stake your profit would be:
Profit = (Final Price – Opening Price) x stake
Profit = (280.9p – 271.0p) x Â£10 per penny stake
Profit = 9.9p x Â£10 per penny stake
Profit = Â£99.00 profit
Speculating on equities, whether by spread betting or not, is not always easy. With this example, you wanted the share price to rise. Naturally, it can also fall.
If the Evraz share price had started to fall then you might choose to close your spread bet to stop any further losses.
So if the spread pulled back to 262.6p – 263.6p then this means you would settle your position by selling at 262.6p. Therefore, you would make a loss of:
Loss = (Final Price – Opening Price) x stake
Loss = (262.6p – 271.0p) x Â£10 per penny stake
Loss = -8.4p x Â£10 per penny stake
Loss = -Â£84.00 loss
Note: Evraz Rolling Daily spread betting price quoted as of 10-Aug-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.