Category — Financial Spread Betting Tips

Where to Spread Bet on Smith and Nephew?

You can spread bet on Smith and Nephew with any of the following companies:

• Financial Spread
• Tradefair
• IG Index

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

Spread Betting on Smith and Nephew

If an investor is looking to speculate on UK companies like Smith and Nephew then one possibility could be to place a spread bet on the Smith and Nephew share price.

If you were to look at the Capital Spreads trading site, as of Friday, they were showing the Smith and Nephew Rolling Daily market at 622.1p – 623.4p. As a result, you can spread bet on the Smith and Nephew share price:

• Moving above 623.4p, or
• Moving below 622.1p

Whilst spread betting on FTSE 350 shares you trade in £x per penny. So, if you choose to invest £10 per penny and the Smith and Nephew share price changes by 5p then that would change your profits (or losses) by £50. £10 per penny x 5p = £50.

Rolling Daily Shares Markets

Be aware that this is a Rolling Daily Market and so there is no predetermined closing date for this market. Should your trade be left open at the end of the trading day, it will stay open and roll over into the next trading session.

If your bet does roll over and you are speculating on the market to:

• Move higher – then you usually pay a small overnight financing fee, or
• Move lower – then a small payment is normally credited to your account

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

Smith and Nephew Rolling Daily Shares Spread Betting Example

So, if we think about the above spread of 622.1p – 623.4p and make the assumptions that:

• you have done your market analysis, and
• you think that the Smith and Nephew share price is likely to go above 623.4p

then you might decide that you want to buy a spread bet at 623.4p and risk £5 per penny.

This means that you make a profit of £5 for every penny that the Smith and Nephew shares increase and move higher than 623.4p. Nevertheless, you will make a loss of £5 for every penny that the Smith and Nephew market goes below 623.4p.

Put another way, should you ‘Buy’ a spread bet then your profit/loss is calculated by taking the difference between the closing price of the market and the initial price you bought the market at. You then multiply that difference in price by your stake.

With this in mind, if after a few sessions the shares rose then you might consider closing your spread bet to lock in your profit.

Taking this a step further, if the market did go up then the spread might change to 646.8p – 648.1p. You would close your trade by selling at 646.8p. So, with the same £5 stake your profit would be:

P&L = (Settlement Price – Opening Price) x stake
P&L = (646.8p – 623.4p) x £5 per penny stake
P&L = 23.4p x £5 per penny stake
P&L = £117.00 profit

Speculating on equities, whether by spread betting or not, can fail to go to plan. In this example, you wanted the share price to increase. Of course, the share price can also decrease.

If the Smith and Nephew share price dropped then you could close your spread bet in order to restrict your losses.

So if the spread pulled back to 596.9p – 598.2p then this means you would close your position by selling at 596.9p. That would mean you would make a loss of:

P&L = (Settlement Price – Opening Price) x stake
P&L = (596.9p – 623.4p) x £5 per penny stake
P&L = -26.5p x £5 per penny stake
P&L = -£132.50 loss

Note: Smith and Nephew Rolling Daily spread quoted as of 02-Sep-11.

Smith and Nephew Spread Betting – More Details

For more information on trading Smith and Nephew, also see Smith and Nephew 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.

Where to Spread Bet on Bank of America?

You can spread bet on Bank of America 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 Bank of America

If you decide to speculate on US companies like Bank of America then one possibility could be to spread trade on the Bank of America share price.

Looking at the FinancialSpreads spread trading site, as of Thursday, they were showing the Bank of America Rolling Daily market at $7.64 – $7.67. Therefore, an investor could spread trade on the Bank of America shares:

• Moving above $7.67, or
• Moving below $7.64

Whilst making a spread bet on S&P 500 equities you trade in £x per cent. Therefore, if you chose to risk £6 per cent and the Bank of America share price changes by $0.05 then there would be a difference to your profit/loss of £30. £6 per cent x $0.05 = £30.

You are also able to trade this market in Euros or Dollars, e.g. €x per cent.

Rolling Daily Equities Markets

It is important to note that this is a Rolling Daily Market and so unlike a normal spread betting futures market, there is no settlement date. If you decide to leave your trade open at the end of the day, it just rolls over into the next session.

If you do roll over a trade and you are spread betting that the market will:

• Increase – then you are charged a small overnight financing fee, or
• Decrease – then you will usually receive a small credit to your account

For a more detailed guide to Rolling Daily Markets, including a fully worked example, please read our feature Rolling Daily Spread Betting.

Bank of America Rolling Daily – US Equities Trading Example

If we think about the spread of $7.64 – $7.67 and make the assumptions that:

• you have done your analysis, and
• it leads you to feel that the Bank of America shares are likely to increase and move higher than $7.67

then you could decide that you want to buy at $7.67 for a stake of £3 per cent.

With such a bet you win £3 for every cent that the Bank of America shares increase and go above $7.67. Nevertheless, such a bet also means that you will lose £3 for every cent that the Bank of America market moves lower than $7.67.

Considering this from another angle, if you were to ‘Buy’ a spread bet then your P&L is found by taking the difference between the closing price of the market and the price you bought the spread at. You then multiply that difference in price by the stake.

If after a few hours the share price started to increase then you might want to close your position and therefore guarantee your profits.

So if the market increased then the spread, set by the spread betting company, might move up to $8.00 – $8.03. You would close your trade by selling at $8.00. As a result, with the same £3 stake this trade would result in a profit of:

P&L = (Final Level – Initial Level) x stake
P&L = ($8.00 – $7.67) x £3 per cent stake
P&L = $0.33 x £3 per cent stake
P&L = 33¢ x £3 per cent stake
P&L = £99 profit

Spread betting on equities may not go to plan. With this example, you had bet that the share price would rise. Of course, it could go down.

If the Bank of America shares had fallen then you might choose to close your position in order to limit your losses.

So if the spread pulled back to $7.38 – $7.41 then you would settle/close your trade by selling at $7.38. Accordingly, your loss would be:

P&L = (Final Level – Initial Level) x stake
P&L = ($7.38 – $7.67) x £3 per cent stake
P&L = -$0.29 x £3 per cent stake
P&L = -29¢ x £3 per cent stake
P&L = -£87 loss

Note: Bank of America Rolling Daily market quoted as of 25-Aug-11.

Bank of America Spread Betting – More Details

For more information on trading Bank of America, also see Bank of America 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.

Guide to Online Spread Betting on G4S

Where to Spread Bet on G4S?

You can spread bet on G4S with any of the following companies:

• Financial Spreads
• Tradefair
• Capital Spreads

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

Spread Betting on G4S

Should you want to invest in UK companies like G4S then one solution could be to place a spread bet on the G4S share price.

If an investor was to look at the Capital Spreads spread trading website, as of Friday, they were showing the G4S Rolling Daily market at 259.2p – 259.7p. This means you could spread trade on the G4S share price:

• Going above 259.7p, or
• Going below 259.2p

When making a spread bet on FTSE 350 shares you trade in £x per penny. As a result, if you decide to have a stake of £15 per penny and the G4S shares move 5p then there would be a difference to your profit/loss of £75. £15 per penny x 5p = £75.

Rolling Daily Equities Markets

You should note that this is a Rolling Daily Market which means that there is no closing date for this market. Therefore, if you decide not to close your trade by the end of the day, it will simply 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:

• Increase – then you usually pay a small overnight financing fee, or
• Decrease – then a small payment is usually credited to your account

For a fully worked example see Rolling Daily Spread Betting.

G4S Rolling Daily Equities Spread Betting Example

So, if you consider the above spread of 259.2p – 259.7p and make the assumptions that:

• you have done your analysis of the markets, and
• you feel that the G4S shares are likely to push higher than 259.7p

then you may decide that you are going to buy a spread bet at 259.7p for a stake of, let’s say, £10 per penny.

So, you make a profit of £10 for every penny that the G4S shares go above 259.7p. Nevertheless, such a bet also means that you will lose £10 for every penny that the G4S market decreases below 259.7p.

Thinking of this in a slightly different way, if you were to buy a spread bet then your profit/loss is calculated by taking the difference between the closing price of the market and the price you bought the spread at. You then multiply that difference in price by the stake.

Therefore, if after a few days the share price started to increase then you might think about closing your trade and therefore guarantee your profits.

If that happened then the spread, set by the spread betting company, might move up to 268.8p – 269.3p. You would close your position by selling at 268.8p. Accordingly, with the same £10 stake you would make:

Profit / loss = (Final Level – Initial Level) x stake
Profit / loss = (268.8p – 259.7p) x £10 per penny stake
Profit / loss = 9.1p x £10 per penny stake
Profit / loss = £91.00 profit

Financial spread trading on shares doesn’t always go to plan. In this example, you had bet that the share price would rise. Naturally, it could fall.

If the G4S shares had started to fall then you could choose to close your trade to stop any further losses.

Should the spread fall back to 249.3p – 249.8p you would sell back your position at 249.3p. That would mean you would lose:

Profit / loss = (Final Level – Initial Level) x stake
Profit / loss = (249.3p – 259.7p) x £10 per penny stake
Profit / loss = -10.4p x £10 per penny stake
Profit / loss = -£104.00 loss

Note – G4S Rolling Daily market quoted as of 26-Aug-11.

G4S Spread Betting – More Details

For more information on trading G4S, also see G4S 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.

Where to Spread Bet on Unite Group?

You can spread bet on Unite Group 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 Unite Group

If an investor wants to invest in UK companies such as Unite Group then one solution could be spread betting on the Unite Group share price.

Looking at the Inter Trader spread trading site, as of Friday, they were showing the Unite Group Rolling Daily market at 169.1p – 170.3p. Therefore, an investor could spread bet on the Unite Group shares:

• Increasing higher than 170.3p, or
• Decreasing lower than 169.1p

Whilst spread trading on FTSE 350 shares you trade in £x per penny. So, if you risked £10 per penny and the Unite Group share price moves 5p then that would alter your bottom line by £50. £10 per penny x 5p = £50.

Rolling Daily Shares Markets

This is a Rolling Daily Market which means that unlike a futures market, there is no closing date. If a trade is still open when the markets close at the end of the day, it will roll over to the next trading day.

If a bet is rolled over and you are speculating on the market to:

• Move higher – then you are charged a small overnight financing fee, or
• Move lower – then a small payment will usually be credited to your account

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

Unite Group Rolling Daily Equities Trading Example

So, if we consider the above spread of 169.1p – 170.3p and assume:

• you have done your market analysis, and
• you feel that the Unite Group share price is likely to increase and move above 170.3p

then you might decide that you want to buy at 170.3p and invest £15 per penny.

With such a bet you make a profit of £15 for every penny that the Unite Group shares push higher than 170.3p. Nevertheless, it also means that you will lose £15 for every penny that the Unite Group market falls lower than 170.3p.

Looked at another way, should you buy a spread bet then your profit/loss is worked out by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that difference in price by the stake.

As a result, if after a few days the share price started to increase then you might want to close your position and therefore guarantee your profits.

If that happened then the spread, determined by the spread betting company, might change to 177.1p – 178.3p. You would settle your position by selling at 177.1p. Accordingly, with the same £15 stake your profit would be:

Your Profits (or losses) = (Settlement Price – Opening Price) x stake
Your Profits (or losses) = (177.1p – 170.3p) x £15 per penny stake
Your Profits (or losses) = 6.8p x £15 per penny stake
Your Profits (or losses) = £102.00 profit

Spread betting on equities is not simple. In this example, you wanted the share price to rise. Nevertheless, the share price can also decrease.

If the Unite Group shares had fallen then you might decide to close/settle your trade to stop any further losses.

So if the market fell to 164.3p – 165.5p then this means you would sell back your position at 164.3p. That would mean you would make a loss of:

Your Profits (or losses) = (Settlement Price – Opening Price) x stake
Your Profits (or losses) = (164.3p – 170.3p) x £15 per penny stake
Your Profits (or losses) = -6.0p x £15 per penny stake
Your Profits (or losses) = -£90.00 loss

Note – Unite Group Rolling Daily equities market correct as of 26-Aug-11.

Unite Group Spread Betting – More Details

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

Where to Spread Bet on the FTSE 100?

Investors are able to spread bet on the FTSE 100 stock market index with these spread betting firms:

• Financial Spreads
• IG Index
• Inter Trader

However, you should note that this spread betting market may also be available with other Spread Trading Companies.

FTSE 100 Spread Betting – More Information

For more details about speculating on the FTSE 100 index, also see FTSE 100 Spread Betting.

How to Spread Bet on Indices – FTSE 100 Rolling Daily

As with many global markets, you can place a spread bet on indices, like the FTSE 100, to go up or down.

If you were to look at the Tradefair spread trading website, as of Friday, they were showing the FTSE 100 Rolling Daily market at 5274.0 – 5275.0. This means you can spread trade on the FTSE 100 index:

• Increasing above 5275.0, or
• Decreasing below 5274.0

Whilst financial spread trading on the FTSE 100 index you trade in £x per point. As a result, if you invest £4 per point and the FTSE 100 moves 5.0 points then that would be a difference to your P&L of £20. £4 per point x 5.0 points = £20.

Rolling Daily Index Markets

One important thing to note is that this is a ‘Rolling Daily Market’ and therefore it does not have a set closing date. If your trade is open at the end of the day, it will stay open and roll over into the next trading session.

If a trade is rolled over and you are speculating on the market to:

• Rise – then you usually pay a small overnight financing fee, or
• Fall – then you will usually receive a small credit to your account

For a more detailed guide to Rolling Daily Markets, including a fully worked example, please read our feature Rolling Daily Spread Betting.

FTSE 100 Rolling Daily Indices Spread Betting Example

So, if we think about the above spread of 5274.0 – 5275.0 and make the assumptions that:

• you have done your analysis of the markets, and
• you think that the FTSE 100 index will increase and move higher than 5275.0

then you might choose to buy a spread bet at 5275.0 for a stake of £2 per point.

With such a bet you make a profit of £2 for every point that the FTSE 100 index rises above 5275.0. On the other hand, you will lose £2 for every point that the FTSE 100 market decreases below 5275.0.

Thinking of this in a slightly different way, should you buy a spread bet then your P&L is worked out by taking the difference between the final price of the market and the initial price you bought the market at. You then multiply that difference in price by your stake.

With this in mind, if after a few sessions the stock market rose then you might consider closing your spread bet to secure your profit.

As an example, should the market rise, the spread, determined by the spread betting company, could be adjusted to 5346.2 – 5347.2. In order to close/settle your position you would sell at 5346.2. Therefore, with the same £2 stake your profit would be calculated as:

Profit = (Closing Price – Opening Price) x stake

Profit = (5346.2 – 5275.0) x £2 per point stake

Profit = 71.2 x £2 per point stake

Profit = £142.40 profit

Speculating on stock market indices is not always straightforward. In this example, you had bet that the index would go up. Naturally, the index could go down.

If the FTSE 100 market decreased, contrary to your expectations, then you might choose to close your position in order to restrict your losses.

Should the spread drop to 5211.7 – 5212.7 then you would close your spread bet by selling at 5211.7. If so, that would mean you would lose:

Loss = (Closing Price – Opening Price) x stake

Loss = (5211.7 – 5275.0) x £2 per point stake

Loss = -63.3 x £2 per point stake

Loss = -£126.60 loss

Note – FTSE 100 Rolling Daily spread betting market correct as of 05-Aug-11.

Online Guide to Financial Spread Betting

• Financial Spread Betting
• Financial Spread Betting Firms
• Financial Spread Betting Tips

Financial Spread Betting: Accounts and Offers

For a detailed spread betting comparison, including spread sizes, the spread betting markets on offer and account services, please see Financial Spread Betting Accounts.

In addition, for details on current spread betting offers from some of the leading financial spread betting companies, also see Financial Spread Betting Offers.

Financial spread betting involves a high level of risk to your trading capital and can result in losses that are greater than your initial stake. Please ensure that it fits your investment objectives as it may not be suitable for all types of investor. You should only speculate with money that you can afford to lose. Before trading, please ensure you fully appreciate the risk and where appropriate seek independent advice.