Category — Shares Spread Betting

In mid-morning trading, the UK 100 is once again taking a beating, down 50 points as Greek worries cause a general flight from risk.

After yesterday’s crunch moment in Greece, when politicians finally threw in the towel on their attempts to form a government, it was always going to be a nervy start to trading in London.

Shares spread betting markets registered heavy losses immediately on opening, as investors deserted assets for the usual safe havens.

In addition, Italian and Spanish bond yields began hitting highs not seen for several months.

A meeting between the new French president and the German chancellor produced the usual platitudes. However, investors are now very worried that the much-touted Eurozone firewalls will not be sufficient to prevent other nations following Greece towards the exit.

Today is a bad day to announce a profit warning, and oilfield engineer Lamprell is down 60% after it warned of a loss for its first half.

It was a weak finish last night in the US, so futures currently point to only modest losses for Wall Street this afternoon, with the S&P 500 set to start down 2 points at around 1329.

The Eurozone remains the only game in town, but there will be US housing and industrial production data out today to provide some light relief.

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 Chris Beauchamp, Market Analyst, 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.

After an early advance London markets are now fighting to stay in positive territory, with the FTSE up by only 10 points.

It all started so well this morning. A stronger-than-expected German GDP reading demonstrated the robustness of the Eurozone’s principal economy, while French data at least confirmed that Paris had not slipped back into recession.

This helped indices spread betting markets gain ground, but the atmosphere remained cautious.

That caution proved to be well-founded, as Italian GDP emerged to spoil the party, coming in below expectations. Markets promptly retreated.

In a busy morning for Eurozone economic data, overall Eurozone GDP for the first quarter was left unchanged at 0.0 percent.

This shows that the German titan is still doing just enough to hold the line against a union-wide recession.

Meanwhile, we are facing yet another day of Greek negotiations, but any hope that was left is already fading.

Also of note today is the installation of the new French president. One of his first acts will be to fly to Berlin and meet with Chancellor Merkel to discuss the never-ending crisis.

Thankfully there is plenty of US data out today to provide a degree of light relief from the euro tragedy.

US CPI, retail sales and the Empire manufacturing index all published during the afternoon.

S&P 500 futures are currently pointing to a five-point gain on the open.

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 trading, the FTSE spread betting market has started the week resolutely lower, down 100 points as Eurozone worries take their toll.

What little difference a weekend makes. Two days of back-and-forth negotiations in Athens produced much heat but little light, and the world woke up on Monday morning to yet another day without a Greek government.

New elections in June now look like a certainty, and the possibility of a Greek exit from the Eurozone is being openly discussed in the corridors of power in Europe.

The announcement of a meeting of Eurozone finance ministers, planned for this afternoon, is a clear sign that we are in the grip of another crisis, although don’t expect anything earth-shattering to emerge from their discussions.

Almost all of the FTSE 100 constituents are down, with the damage being particularly heavy among banks and miners, despite a loosening of Chinese monetary policy over the weekend.

With no economic data out this afternoon, Greece will remain in the spotlight, and US futures are pointing to a hefty drop for Wall Street this afternoon, with the S&P 500 starting around nine points lower.

The question is now whether a Greek withdrawal can be managed in an orderly fashion, or whether it will cause a domino effect among the weakened countries of the Eurozone’s periphery.

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.

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:

• IG Index
• CMC Markets
• City Index

However, you should note that this spread betting market may also be available with other Spread Betting 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 many markets, investors can spread bet on stock market indices, such as the Spain 35, to either increase or decrease.

Looking at the IG Index spread trading site, as of Friday, they were showing the Spain 35 Rolling Daily market at 6839.0 – 6844.0. This means an investor can spread trade on the Spain 35 market:

• Rising higher than 6844.0, or
• Falling lower than 6839.0

When spread trading on the Spain 35 index you trade in £x per point. As a result, if you decided to risk £2 per point and the Spain 35 moves 5.0 points then that would change your bottom line by £10. £2 per point x 5.0 points = £10.

Rolling Daily Indices Markets

Note that this is a Rolling Daily Market and therefore it does not have a set closing date. Should your trade be left open at the end of the trading day, it will roll over to the next trading day.

If a trade is rolled over and you 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 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 Betting Example

If we think about the spread of 6839.0 – 6844.0 and assume:

• you have analysed the markets, and
• you feel that the Spain 35 index will increase and move above 6844.0

then you might buy at 6844.0 for a stake of £1 per point.

Therefore, you make a profit of £1 for every point that the Spain 35 index pushes higher than 6844.0. Conversely, however, it also means that you will make a loss of £1 for every point that the Spain 35 market goes lower than 6844.0.

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 price difference by the stake.

With this in mind, if after a few trading sessions the index rose then you might want to close your position so that you can secure your profit.

Taking this a step further, if the market did go up then the spread might change to 6950.1 – 6955.1. You would close/settle your spread bet by selling at 6950.1. Accordingly, with the same £1 stake this trade would result in a profit of:

Profit = (Closing Level – Initial Level) x stake
Profit = (6950.1 – 6844.0) x £1 per point stake
Profit = 106.1 x £1 per point stake
Profit = £106.10 profit

Speculating on stock market indices, whether by financial spread betting or otherwise, may not go to plan. In this example, you had bet that the index would go up. Of course, the index can also decrease.

If the Spain 35 index had fallen then you could close your position in order to limit your losses.

Should the market pull back to 6724.2 – 6729.2 you would sell back your position at 6724.2. Accordingly, your loss would be:

Loss = (Closing Level – Initial Level) x stake
Loss = (6724.2 – 6844.0) x £1 per point stake
Loss = -119.8 x £1 per point stake
Loss = -£119.80 loss

Note: Spain 35 Rolling Daily index market accurate as of 11-May-12.

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 Spread Trading 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.

Where to Spread Bet on JP Morgan?

You can spread bet on JP Morgan 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 JP Morgan

If an investor is looking to invest in firms such as JP Morgan then one solution could be spread trading on the JP Morgan share price.

Looking at the Tradefair trading site, as of Friday, they were showing the JP Morgan Rolling Daily market at $37.25 – $37.32. As a result, you could spread bet on the JP Morgan share price:

• Moving higher than $37.32, or
• Moving lower than $37.25

Whilst spread trading on US equities you trade in £x per cent. So, if your stake was £4 per cent and the JP Morgan shares move $0.05 then that would alter your bottom line by £20. £4 per cent x $0.05 = £20.

Note that you are also able to invest in this market in Dollars or Euros, e.g. $x per cent.

Rolling Daily Shares Markets

This is a Rolling Daily Market which means that it does not have a set closing date. Should your trade be left open at the end of the trading day, it will stay open and roll over into the next day.

If you allow your position to roll over and are spread betting on the market to:

• Go up – then you will usually be charged a small overnight financing fee, or
• Go down – then a small payment is often credited to your account

To find out more about Rolling Daily Markets read our feature Rolling Daily Spread Betting.

JP Morgan Rolling Daily – US Equities Spread Betting Example

If you consider the above spread of $37.25 – $37.32 and make the assumptions that:

• you have done your research, and
• you feel that the JP Morgan share price is likely to go above $37.32

then you may go long of the market at $37.32 for a stake of, for example, £2 per cent.

So, you make a profit of £2 for every cent that the JP Morgan shares increase and move higher than $37.32. On the other hand, it also means you will make a loss of £2 for every cent that the JP Morgan market moves below $37.32.

Thinking of this in a slightly different way, should you ‘Buy’ a spread bet then your P&L is calculated 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 your stake.

As a result, if after a few hours the stock started to increase then you might think about closing your trade so that you can secure your profit.

Therefore, if the market moved up then the spread might change to $37.97 – $38.04. You would settle your position by selling at $37.97. Therefore, with the same £2 stake:

Your P&L = (Final Price – Opening Price) x stake
Your P&L = ($37.97 – $37.32) x £2 per cent stake
Your P&L = $0.65 x £2 per cent stake
Your P&L = 65¢ x £2 per cent stake
Your P&L = £130 profit

Trading shares, by spread betting or otherwise, can work against you. In the above example, you had bet that the share price would rise. However, the share price could decrease.

If the JP Morgan share price weakened, against your expectations, then you might choose to close your spread bet in order to restrict your losses.

If the market dropped to $36.59 – $36.66 then this means you would close your position by selling at $36.59. That would mean you would make a loss of:

Your P&L = (Final Price – Opening Price) x stake
Your P&L = ($36.59 – $37.32) x £2 per cent stake
Your P&L = -$0.73 x £2 per cent stake
Your P&L = -73¢ x £2 per cent stake
Your P&L = -£146 loss

Note: JP Morgan Rolling Daily spread taken as of 11-May-12.

JP Morgan Spread Betting – More Details

For more information on trading JP Morgan, also see JP Morgan 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.