Category — Financial Spread Betting Tips
Online Guide to Financial Spread Betting
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:
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: 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.
August 7, 2011 No Comments
Guide to Spread Trading on the S&P 500
Where to Spread Bet on the S&P 500?
Investors are able to spread bet on the S&P 500 stock market index with these spread betting firms:
However, you should note that this spread betting market may also be available with other Spread Betting Companies.
S&P 500 Spread Betting – More Information
For more details about speculating on the S&P 500 index, also see S&P 500 Spread Betting.
How to Spread Bet on Indices – S&P 500 Rolling Daily
As with many markets, investors can place a spread bet on indices, such as the S&P 500, to either rise or fall.
If an investor was to look at the InterTrader trading site, as of Friday, they were showing the S&P 500 Rolling Daily market at 1199.6 – 1200.0. As a result, you could spread trade on the S&P 500 market:
- Rising above 1200.0, or
- Falling below 1199.6
Whilst spread trading on the S&P 500 index you trade in £x per 0.1 points. So, if your stake was £6 per 0.1 points and the S&P 500 moves 0.5 points then there would be a difference to your profit/loss of £30. £6 per 0.1 points x 0.5 points = £30.
Rolling Daily Index Markets
Note that this is a Rolling Daily Market and therefore unlike a normal spread betting futures market, there is no settlement date. If your trade is still open at the end of the trading day, it will stay open and roll over into the next trading session.
If you do let your position roll over into the next day and are spread betting on the market to:
- Move higher – then you will normally be charged a small financing fee, or
- Move lower – then a small payment is usually credited to your account
For a fully worked example see Rolling Daily Spread Betting.
S&P 500 Rolling Daily Indices Spread Betting Example
Now, if you think about the above spread of 1199.6 – 1200.0 and assume:
- you have completed your analysis of the markets, and
- you think that the S&P 500 index will increase and go above 1200.0
then you may buy a spread bet at 1200.0 for a stake of, let’s say, £2 per 0.1 points.
With such a spread bet you make a profit of £2 for every 0.1 points that the S&P 500 index rises higher than 1200.0. Of course, you will lose £2 for every 0.1 points that the S&P 500 market decreases lower than 1200.0.
Considering this from another angle, if you buy a spread bet then your P&L is worked out by taking the difference between the closing price of the market and the price you bought the market at. You then multiply that difference in price by your stake.
If after a few days the market moved higher then you could consider closing your spread bet to lock in your profit.
As an example, should the market rise, the spread, determined by the spread betting company, could be adjusted to 1206.6 – 1207.0. You would close your spread bet by selling at 1206.6. So, with the same £2 stake:
P&L = (Settlement Level – Opening Level) x stake
P&L = (1206.6 – 1200.0) x £2 per 0.1 points stake
P&L = 6.6 x £2 per 0.1 points stake
P&L = £132 profit
Financial spread trading on indices is not always straightforward. In this case, you wanted the index to go up. Nevertheless, the index could decrease.
If the S&P 500 index weakened, against your expectations, then you might decide to settle/close your spread bet to stop any further losses.
So if the market dropped to 1194.0 – 1194.4 then this means you would settle your trade by selling at 1194.0. If so, that would mean you would lose:
P&L = (Settlement Level – Opening Level) x stake
P&L = (1194.0 – 1200.0) x £2 per 0.1 points stake
P&L = -6.0 x £2 per 0.1 points stake
P&L = -£120 loss
Note: S&P 500 Rolling Daily spread betting price accurate as of 05-Aug-11.
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 Spread Betting Account.
In addition, for details on current spread betting offers from some of the leading financial spread betting companies, also see 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.
August 6, 2011 No Comments
Guide to Spread Betting on the Spain 35
Where to Spread Bet on the Spain 35?
Investors are able to spread bet on the Spain 35 stock market index with these spread betting firms:
However, you should note that this spread betting market may also be available with other Spread Trading Companies.
Spain 35 Spread Betting – More Information
For more details about speculating on the Spain 35 index, also see Spain 35 Spread Betting.
How to Spread Bet on Indices – Spain 35 Rolling Daily
As with a wide variety of markets, you can speculate on stock market indices, like the Spain 35, to either rise or fall.
If you were to look at the IG Index spread trading website, as of Friday, they were showing the Spain 35 Rolling Daily market at 9574.0 – 9582.0. This means you could spread bet on the Spain 35 index:
- Increasing above 9582.0, or
- Decreasing below 9574.0
Whilst financial spread betting on the Spain 35 index you trade in £x per point. As a result, if your stake was £2 per point and the Spain 35 moves 15 points then that would make a difference to your P&L of £30. £2 per point x 15 points = £30.
Rolling Daily Indices Markets
One thing to note is that this is a Rolling Daily Market which means that in contrast with futures markets, there is no closing date. If you decide to leave your trade open at the end of the day, it just rolls over into the next session.
Should your trade roll over, if you are speculating that the market will:
- Go up – then you will often be charged a small financing fee, or
- Go down – then a small payment is often credited to your account
If you would like a fully worked example then see Rolling Daily Spread Betting.
Spain 35 Rolling Daily Index Spread Trading Example
So, if we consider the spread of 9574.0 – 9582.0 and assume:
- you have completed your market analysis, and
- you feel that the Spain 35 index will increase and move higher than 9582.0
then you might choose to go long of the market at 9582.0 and invest, for example, £1 per point.
So, you win £1 for every point that the Spain 35 index pushes above 9582.0. Nevertheless, it also means that you will lose £1 for every point that the Spain 35 market moves lower than 9582.0.
Put another way, if you were to ‘Buy’ a spread bet then your P&L is found 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 the stake.
With this in mind, if after a few trading sessions the index started to increase then you might think about closing your spread bet so that you can lock in your profit.
So if the market rose then the spread, determined by the spread betting company, could be adjusted to 9697.0 – 9705.0. You would close/settle your spread bet by selling at 9697.0. As a result, with the same £1 stake your profit would come to:
Profits (or losses) = (Settlement Level – Initial Level) x stake
Profits (or losses) = (9697.0 – 9582.0) x £1 per point stake
Profits (or losses) = 115.0 x £1 per point stake
Profits (or losses) = £115.00 profit
Speculating on indices is not always simple. With the above, you had bet that the index would increase. Naturally, it could fall.
If the Spain 35 market dropped then you could close your trade in order to limit your losses.
Should the spread drop to 9452.6 – 9460.6 you would sell back your position at 9452.6. If so, your loss would be calculated as:
Profits (or losses) = (Settlement Level – Initial Level) x stake
Profits (or losses) = (9452.6 – 9582.0) x £1 per point stake
Profits (or losses) = -129.4 x £1 per point stake
Profits (or losses) = -£129.40 loss
Note: Spain 35 Rolling Daily spread quoted as of 29-Jul-11.
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 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.
July 31, 2011 No Comments
Guide to Financial Spread Betting on Enterprise Inns
Where to Spread Bet on Enterprise Inns?
You can spread bet on Enterprise Inns with any of the following companies:
Although note that you can also spread bet with other Spread Betting Companies.
Spread Betting on Enterprise Inns
If an investor wants to speculate on companies like Enterprise Inns then one solution is a spread bet on the Enterprise Inns share price.
Looking at the FinancialSpreads.com site, as of Friday, they were showing the Enterprise Inns Rolling Daily market at 56.6p – 57.0p. Therefore, you can spread bet on the Enterprise Inns share price:
- Going above 57.0p, or
- Going below 56.6p
When spread betting on FTSE 350 equities you trade in £x per penny. So, if your stake was £15 per penny and the Enterprise Inns share price changes by 5p then that would make a difference to your P&L of £75. £15 per penny x 5p = £75.
Rolling Daily Shares Markets
One important thing to note is that this is a Rolling Daily Market and so there is no settlement date for this market. If your position is still open at the end of the day, it will simply roll over to the next session.
If you allow your bet to roll over and are spread betting on the market to:
- Increase – then you will normally be charged a small financing fee, or
- Decrease – then a small payment is normally credited to your account
To see a fully worked example read Rolling Daily Spread Betting.
Enterprise Inns Rolling Daily Shares Spread Betting Example
If you consider the above spread of 56.6p – 57.0p and assume:
- you have done your research, and
- you feel that the Enterprise Inns share price looks like it will go higher than 57.0p
then you might decide that you want to buy a spread bet at 57.0p for a stake of £25 per penny.
Therefore, you make a profit of £25 for every penny that the Enterprise Inns shares push above 57.0p. On the other hand, you will make a loss of £25 for every penny that the Enterprise Inns market moves below 57.0p.
Put another way, if you were to ‘Buy’ a spread bet then your profits (or losses) are found by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that price difference by your stake.
With this in mind, if after a few sessions the share price started to move upwards then you could choose to close your position in order to guarantee your profit.
Taking this a step further, if the market rose then the spread, set by the spread trading company, might change to 60.4p – 60.8p. You would close your spread bet by selling at 60.4p. Accordingly, with the same £25 stake you would make:
Profit = (Closing Level – Initial Level) x stake
Profit = (60.4p – 57.0p) x £25 per penny stake
Profit = 3.4p x £25 per penny stake
Profit = £85.00 profit
Speculating on shares, whether by spread betting or not, is not simple. In this case, you had bet that the share price would increase. Nevertheless, it can also decrease.
If the Enterprise Inns stock dropped then you could close your spread bet to limit your losses.
Should the spread pull back to 53.0p – 53.4p then this means you would settle your spread bet by selling at 53.0p. Therefore, you would make a loss of:
Loss = (Closing Level – Initial Level) x stake
Loss = (53.0p – 57.0p) x £25 per penny stake
Loss = -4.0p x £25 per penny stake
Loss = -£100.00 loss
Note: Enterprise Inns Rolling Daily spread betting market correct as of 29-Jul-11.
Enterprise Inns Spread Betting – More Details
For more information on trading Enterprise Inns, also see Enterprise Inns 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.
July 30, 2011 No Comments
Guide to Financial Spread Trading on ICAP
Where to Spread Bet on ICAP?
You can spread bet on ICAP with any of the following companies:
Although note that you can also spread bet with other Spread Betting Companies.
Spread Betting on ICAP
If you want to invest in firms such as ICAP then one solution is a spread bet on the ICAP share price.
If you were to look at the Tradefair spread trading site, as of Friday, they were showing the ICAP Rolling Daily market at 490.5p – 491.5p. As a result, an investor could spread bet on the ICAP shares:
- Increasing higher than 491.5p, or
- Decreasing lower than 490.5p
Whilst financial spread betting on FTSE 350 shares you trade in £x per penny. As a result, if you decide to risk £10 per penny and the ICAP shares move 5p then there would be a difference to your P&L of £50. £10 per penny x 5p = £50.
Rolling Daily Shares Markets
You should note that this is a ‘Rolling Daily Market’, therefore there is no preset settlement date for this market. If a trade is still open when the markets close at the end of the day, it simply keeps rolling over into the next trading session.
If you allow your trade to roll over and are spread betting on the market to:
- Move higher – then you will often be charged a small financing fee, or
- Move lower – then a small payment is usually credited to your account
For more information see Rolling Daily Spread Betting.
ICAP Rolling Daily Shares Trading Example
So, if you think about the spread of 490.5p – 491.5p and make the assumptions that:
- you have done your market research, and
- you feel that the ICAP share price looks like it will increase and go above 491.5p
then you may decide that you want to buy at 491.5p and invest, for the sake of argument, £5 per penny.
So, you win £5 for every penny that the ICAP shares rise higher than 491.5p. On the other hand, such a bet also means you will make a loss of £5 for every penny that the ICAP market goes below 491.5p.
Thinking of this in a slightly different way, should you ‘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 your stake.
With this in mind, if after a few hours the shares rose then you might want to close your trade and therefore guarantee your profits.
Taking this a step further, if the market did go up then the spread could change to 507.5p – 508.5p. You would close your position by selling at 507.5p. Therefore, with the same £5 stake you would calculate your profit as:
P&L = (Final Level – Initial Level) x stake
P&L = (507.5p – 491.5p) x £5 per penny stake
P&L = 16.0p x £5 per penny stake
P&L = £80.00 profit
Trading equities can work against you. In this example, you wanted the share price to rise. However, the share price could go down.
If the ICAP share price had started to fall then you could choose to close your trade to limit your losses.
Should the market pull back to 473.1p – 474.1p then this means you would close your trade by selling at 473.1p. As a result, your loss would be:
P&L = (Final Level – Initial Level) x stake
P&L = (473.1p – 491.5p) x £5 per penny stake
P&L = -18.4p x £5 per penny stake
P&L = -£92.00 loss
Note: ICAP Rolling Daily spread betting market correct as of 01-Jul-11.
ICAP Spread Betting – More Details
For more information on trading ICAP, also see ICAP 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.
July 3, 2011 No Comments