Category — Futures Trading

Forex technical analysis video looking at the moves in GBP/USD following lower-than-expected UK inflation data and the potential for US dollar falls if Bernanke fails to mention an exit from QE.

CMC Markets’ Michael Hewson discusses support & resistance levels, market trends and target prices for:

• EUR/USD – Recent dollar strength based on idea that Bernanke or FOMC will mention tapering QE
• GBP/USD – UK inflation data sees sterling weaken but MPC minutes may encourage a bounce

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

In mid-morning trading, the FTSE 100 is little changed, pausing for breath after smashing through the 2007 highs yesterday.

With the FTSE 100 index happily sitting at its highest level since 2000, there will be some who are wondering whether this rally has got ahead of economic fundamentals.

Perhaps global growth doesn’t merit markets at these highs, but liquidity-boosting actions from the central banks seem to be taking precedence.

On that subject, today’s inflation figures for the UK will please both the government and the Bank of England.

A drop in year-on-year CPI growth to 2.4% will give incoming Governor Mark Carney more room for manoeuvre if giving the economy a shot in the arm via additional QE or perhaps more unconventional measures.

Abenomics has apparently proved its worth in Japan, perhaps a dose of it in the UK might help jolt Britain out of its current malaise.

At the bottom of the FTSE today is cruise line operator Carnival, with the shares in ‘full reverse’ after it reduced profit forecasts due to a drop in fares.

Having endured a difficult season, with liners breaking down all over the place, the company will now struggle to rebuild its battered image with potential customers.

Miners are bouncing this morning after yesterday’s impressive late rebound in gold and silver but it would take a brave man to suggest that the metals have halted their rapid declines.

US markets were somewhat diffident yesterday, failing to hold on to the highs seen earlier in the session, but they remain in wait-and-see mode ahead of Ben Bernanke’s testimony to Congress tomorrow.

A couple of Fed speeches today will have investors eagerly looking for any hints as to potential changes in monetary policy, but aside from that we are likely to have to endure another fairly uneventful session.

Ahead of the open, we expect the Dow Jones to start only five points lower at 15,330.

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 Yusuf Heusen, 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.

Detailed market analysis video discussing silver‘s negative trend line and break lower, the rampant bullishness in stock market indices and the breakout in AUD/USD.

Michael Hewson’s video analysis also covers other key commodities such as gold, copper and crude oil, a range of forex pairs including EUR/USD, GBP/USD and EUR/JPY, and indices like the FTSE 100, Dow Jones and DAX 30.

Spread Betting & CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. Only speculate with money that you can afford to lose. These trading products may not be suitable for all investors so seek independent advice.

Video content by Michael Hewson of CMC Markets

The contents on CleanFinancial.com including any articles or videos are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice or form the basis of an of investment decision.

Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.

Content provided by CMC Markets. CMC Markets UK plc and CMC Spreadbet plc are authorised and regulated by the Financial Services Authority in the UK, registered offices, 133 Houndsditch, London, EC3A 7BX.

Given that today is exceptionally light on macro data, intraday markets may lack a catalyst to push higher, so the fairly relentless theme of a robust dollar and bullish investor sentiment may abate slightly today.

The FTSE is within touching distance of its all-time nominal high set in 2000, begging the question of whether a move through the highs can occur or be sustained.

Royal Bank of Scotland is racking up gains of 3.24% this morning, owing to a broker upgrade from Numis.

Ryanair posted record full-year earnings, with profit up by 13%.

The Ryanair share price has added 6.25% in early trade, with investors choosing to shrug off the usual forward-looking caveats put forward by Michael O’Leary, like higher oil prices and EU weakness.

Mining stocks are becoming increasingly isolated among other risk assets, with Randgold Resources losing 2% on news it has agreed a $200m credit facility with its banks.

The takeover story orbiting ENRC endures without resolve; the metal producer has rejected a bid of $4.8 billion and seen its shares slump by 2.8%.

Later in the US, FOMC member Charles Evans is due to speak to the CFA society in Chicago.

It will be interesting to see if he agrees with his colleague Narayana Kocherlakota that US interest rates have not yet been reduced enough.

With the dollar index pushed to three-year highs, this could add to the downside pressure on the US currency.

Dow futures have ticked down and look set to open 13 points lower at 15,341.

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 Brenda Kelly, Senior 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.

Where to Spread Bet on Glencore Xstrata?

 
You can spread bet on Glencore Xstrata 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 Glencore Xstrata

 
If an investor decides to speculate on firms like Glencore Xstrata then one option is to spread bet on the Glencore Xstrata share price.

Looking at a site like FinancialSpreads.com, as of Friday, they were showing the Glencore Xstrata Rolling Daily market at 345.5p – 346.1p. This means an investor can spread trade on the Glencore Xstrata share price:

• Increasing higher than 346.1p, or
• Decreasing lower than 345.5p

Whilst spread betting on UK equities you trade in £x per penny. As a result, if you decided to invest £5 per penny and the Glencore Xstrata share price changes by 30p then that would make a difference to your profit/loss of £150. £5 per penny x 30p = £150.

Rolling Daily Shares Markets

 
Be aware that this is a Rolling Daily Market and so unlike a normal spread betting 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 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 you’ll usually receive a small credit to your account

You can find more on Rolling Daily Markets, as well as a fully worked example, in our feature Rolling Daily Spread Betting.

Glencore Xstrata Rolling Daily Equities Spread Betting Example

 
If you think about the above spread of 345.5p – 346.1p and assume:

• You have completed your analysis of the stock market, and
• Your analysis leads you to feel the Glencore Xstrata shares are likely to go above 346.1p

Then you might decide that you are going to go long of the market at 346.1p for a stake of £15 per penny.

So, you win £15 for every penny that the Glencore Xstrata shares rise higher than 346.1p. Nevertheless, it also means that you will make a loss of £15 for every penny that the Glencore Xstrata market decreases lower than 346.1p.

Looked at another way, if you buy a spread bet then your profit/loss is worked out 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.

Therefore, if after a few sessions the shares started to rise you might decide to close your position and therefore guarantee your profits.

So if the market increased then the spread could change to 356.5p – 357.1p. To close your trade you would sell at 356.5p. So, with the same £15 stake this trade would make you a profit of:

Profit = (Closing Value – Opening Value) x stake
Profit = (356.5p – 346.1p) x £15 per penny stake
Profit = 10.4p x £15 per penny stake
Profit = £156.00 profit

Speculating on shares, by spread trading or otherwise, is not straightforward. With this example, you had bet that the share price would increase. Naturally, it could go down.

If the Glencore Xstrata share price began to drop then you might choose to close your position to stop any further losses.

Should the spread drop to 334.9p – 335.5p then this means you would close your spread bet by selling at 334.9p. Accordingly, your loss would be:

Loss = (Closing Value – Opening Value) x stake
Loss = (334.9p – 346.1p) x £15 per penny stake
Loss = -11.2p x £15 per penny stake
Loss = -£168.00 loss

Note – Glencore Xstrata Rolling Daily spread betting price taken as of 17-May-13.

Live Glencore Xstrata Spread Betting Prices and Charts

 
The CFD chart and prices below gives readers a nice guide to the Glencore Xstrata market.

The Plus 500 chart above normally shows the Glencore Xstrata futures price.

To study live spread trading prices and charts for Glencore Xstrata, you can use a spread trading account.

A spreads account also lets you access shorter term spot prices. Readers should note that all such accounts are subject to status, suitability and credit checks.

Should your account application be accepted, you can log in and make use of the real-time charts and prices. Usually, these are free. So what’s the catch? You are likely to receive an occasional sales letter and/or call from your spread trading provider.

Glencore Xstrata Spread Betting – More Details

 
For more information on trading Glencore Xstrata, also see Glencore Xstrata 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.