Category — Financial Fixed Odds

In mid-morning trade the FTSE 100 is slightly higher on the day.

Markets appear to be taking something of a breather so far today after this week’s volatility.

There is very little on the calendar for traders to focus on today. The Italian government is having a vote on austerity measures but, as there is a further vote next week, the European debt crisis is on hold for today at least.

The biggest gainer so far today is investment manager Schroders and this seems to be something of a delayed reaction to yesterday’s results.

However, for most of this year rallies have ultimately proved to be fruitless so there is still some hesitation in buying into today’s momentum.

Looking ahead to the US open, at the moment we are expecting the Dow Jones index spread trading market to start around 60 points higher.

The only event on the calendar this afternoon is Michigan Sentiment data so it may end up being a much-needed quieter finish to the week.

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.

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

In mid-morning trade the FTSE is managing to hold onto early gains following the strong finish to US trading last night.

The buyers are definitely back in action today after something of a break.

Insurer, Standard Life is enjoying a 10% rally after better-than-expected results cheered investors.

This means the share price has managed to claw back nearly all of the losses incurred during this month’s rout in the shares spread betting markets.

Last night’s statement by the Federal Reserve about keeping interest on the floor for at least the next two years has proved to be the excuse that markets were looking for to drag them out of their steep spiral.

The real test will be over the next couple of days if the major stock market indices can hang onto this bounce.

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.

Financial Market Comments from Ben Critchley, Sales Trader, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

In mid-morning trade the FTSE 100 is under some pressure and has slipped back to yesterday’s low.

Despite a recovery for US stocks after the European close, sentiment in London remains in the doldrums this morning.

Strong results from Aviva gave a small boost early on, but much of this confidence faded quickly.

Lloyds Banking Group are languishing near the bottom of the blue chip table following first-half losses on the back of Irish loan provisions.

Banks have been out of favour with UK investors for much of the last 12 months and results like this against a backdrop of a sliding broader market are unlikely to change that view anytime soon.

Looking ahead to the US open at the moment we are expecting the Dow to start around 60 points lower when trading resumes.

With US Non Farm Payrolls due out tomorrow, traders would normally expect a quiet day in advance of this, but with nerves frayed following this week’s plunges it could well be another volatile session ahead.

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.

Financial Market Comments from Will Hedden, Sales Trader, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

Where to Spread Bet on MAN Group?

You can spread bet on MAN Group with any of the following companies:

• Financial Spread
• Tradefair
• Capital Spreads

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

Spread Betting on MAN Group

If you are looking to invest in companies like MAN Group then one solution could be spread betting on the MAN Group share price.

Looking at the Tradefair spread trading website, as of Friday, they were showing the MAN Group Rolling Daily market at 238.6p – 239.3p. This means you could spread trade on the MAN Group share price:

• Rising higher than 239.3p, or
• Falling lower than 238.6p

When financial spread trading on UK shares you trade in £x per penny. So, if you chose to invest £20 per penny and the MAN Group share price changes by 5p then there would be a difference to your P&L of £100. £20 per penny x 5p = £100.

Rolling Daily Shares Markets

Note that this is a Rolling Daily Market and therefore there is no set settlement date for this market. Should your trade be left open at the end of the trading day, it just rolls over into the next session.

If your position is rolled over and you are speculating that the market will:

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

To see a fully worked example read Rolling Daily Spread Betting.

MAN Group Rolling Daily Equities Trading Example

So, if we think about the spread of 238.6p – 239.3p and make the assumptions that:

• you have done your research, and
• you think that the MAN Group shares are likely to increase and go higher than 239.3p

then you could choose to buy at 239.3p and risk, let’s say, £10 per penny.

This means that you make a profit of £10 for every penny that the MAN Group shares push above 239.3p. Nevertheless, such a bet also means that you will lose £10 for every penny that the MAN Group market decreases lower than 239.3p.

Put another way, if you ‘Buy’ a spread bet then your P&L is 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 difference in price by the stake.

As a result, if after a few sessions the shares started to rise you might decide to close your spread bet in order to secure your profit.

Taking this a step further, if the market rose then the spread, determined by the spread betting firm, could change to 248.3p – 249.0p. To close your position you would sell at 248.3p. So, with the same £10 stake your profit would be:

Your Profits (or losses) = (Closing Level – Initial Level) x stake
Your Profits (or losses) = (248.3p – 239.3p) x £10 per penny stake
Your Profits (or losses) = 9.0p x £10 per penny stake
Your Profits (or losses) = £90.00 profit

Trading equities, whether by spread trading or otherwise, is not always simple. In this example, you wanted the share price to go up. Naturally, the share price can also decrease.

If the MAN Group share price had started to drop then you might decide to settle/close your position to limit your losses.

So if the market pulled back to 231.5p – 232.2p you would settle/close your trade by selling at 231.5p. That would mean you would lose:

Your Profits (or losses) = (Closing Level – Initial Level) x stake
Your Profits (or losses) = (231.5p – 239.3p) x £10 per penny stake
Your Profits (or losses) = -7.8p x £10 per penny stake
Your Profits (or losses) = -£78.00 loss

Note: MAN Group Rolling Daily spread accurate as of 24-Jun-11.

MAN Group Spread Betting – More Details

For more information on trading MAN Group, also see MAN Group 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.

Financial Market Comments from David Jones, Chief Market Strategist, IG Index.

The FTSE 100 kicked off proceedings on a high but is seeing choppy performance throughout the morning. The index currently stands at around the 5800 mark (10.50 London time).

Miners are on the move today as metal prices resume their recent rise, with platinum specialist Lonmin (+2.55%) leading the pack. The financial sector is also putting its weight behind the index, with rises in RBS (+1.56%), Barclays (+2.48%) and Man Group (+2.91%).

Elsewhere in the spread betting markets, retail has taken a hit as shares in beleaguered HMV slump 25% after the group reported worse-than-expected losses – which can only be worrying news in the run up to Christmas.

Today’s biggest loser is medical device manufacturer Smith and Nephew, who is giving back recent gains as yesterday’s bid rumours subside.

At home, alarm bells will be ringing at reports that UK house prices have fallen again, and the October UK trade deficit has unexpectedly widened to a projected £8 billion. And while no surprises are expected from the MPC later today, with QE measures likely to be ruled out again, the Fed is feeling the heat from the American public as their QE2 policies come under fire.

Also under examination is President Obama’s proposed tax deal, which has boosted shares and sent bonds lower. It’s a mixed bag today but with scant rumblings over the European debt crisis the bulls are getting in there while they can. Whether the positive sentiment carries over into the US session remains to be seen.

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.

Good Luck!

DB

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.