Category — Spread Betting Offer

In mid-morning trade, shares in London are back under pressure.

The FTSE 100 is down around 100 points so far today as the Greek debt crisis takes centre stage once more.

A strong finish last week suggested high hopes from the weekend’s meeting of eurozone finance ministers, but with little obvious progress made investors have resumed their cautious stance.

Hardest hit so far are banking shares with Lloyds down by nearly 6%.

FTSE heavyweight mining-sector shares are also on the back foot and compounding the early losses in the index.

Looking ahead to the US open, at the moment we are expecting the Dow Jones to start around 160 points lower than Friday’s close.

Many still expect some sort of central bank assistance to be announced at this week’s Federal Reserve meeting, but the ongoing concerns over a Greek default are likely to overshadow this unless there is some sort of firm reassurance that this can be avoided.

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.

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.

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:

• Financial Spread
• IG Index
• InterTrader

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.

Where to Spread Bet on easyJet?

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

• Financial Spreads
• Inter Trader
• IG Index

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

Spread Betting on easyJet

Should you want to speculate on UK listed companies such as easyJet then one option could be spread trading on the easyJet share price.

If an investor was to look at the Tradefair spread betting site, as of Friday, they were showing the easyJet Rolling Daily market at 363.2p – 365.0p. Therefore, an investor could spread trade on the easyJet shares:

• Moving above 365.0p, or
• Moving below 363.2p

When financial spread betting on FTSE 350 shares you trade in £x per penny. As a result, if you risked £10 per penny and the easyJet shares move 5p then that would be a difference to your bottom line of £50. £10 per penny x 5p = £50.

Rolling Daily Equities Markets

An important aspect of this Rolling Daily Market is 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 simply keeps rolling over into the next trading session.

Should your spread bet roll over, if you are speculating that the market will:

• Go up – then you are charged a small overnight financing fee, or
• Go down – then you will normally receive a small credit to your account

You can learn more about Rolling Daily Markets in our article Rolling Daily Spread Betting.

easyJet Rolling Daily Shares Spread Trading Example

If we think about the above spread of 363.2p – 365.0p and make the assumptions:

• you have done your analysis, and
• it leads you to think that the easyJet share price looks like it will push above 365.0p

then you may decide that you want to go long of the market at 365.0p for a stake of £10 per penny.

Therefore, you win £10 for every penny that the easyJet shares rise higher than 365.0p. However, you will lose £10 for every penny that the easyJet market decreases below 365.0p.

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

With this in mind, if after a few hours the shares started to increase then you might want to close your spread bet to lock in your profit.

As an example, should the market rise, the spread, set by the spread trading firm, might move up to 375.0p – 376.8p. In order to close your position you would sell at 375.0p. Accordingly, with the same £10 stake you would calculate your profit as:

Profits (or losses) = (Settlement Price – Opening Price) x stake
Profits (or losses) = (375.0p – 365.0p) x £10 per penny stake
Profits (or losses) = 10.0p x £10 per penny stake
Profits (or losses) = £100.00 profit

Speculating on equities, by spread betting or otherwise, doesn’t always work out as you would have liked. In this case, you wanted the share price to rise. Of course, the share price can also fall.

If the easyJet stock began to drop then you could choose to close your spread bet in order to limit your losses.

So if the market fell to 353.1p – 354.9p you would settle your spread bet by selling at 353.1p. If so, this would result in a loss of:

Profits (or losses) = (Settlement Price – Opening Price) x stake
Profits (or losses) = (353.1p – 365.0p) x £10 per penny stake
Profits (or losses) = -11.9p x £10 per penny stake
Profits (or losses) = -£119.00 loss

Note – easyJet Rolling Daily equities market quoted as of 22-Jul-11.

easyJet Spread Betting – More Details

For more information on trading easyJet, also see easyJet 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.

Spread Co have released their new and improved trading platform. They have also expanded their product range and made a series of improvements to their services.

Spokesman Ian O’Sullivan said, “Spread Co has always had one of the most professional and slick trading platforms in the business and this latest release improves it further.

“We have been speaking to our clients from all over the world and have implemented many of their suggestions.

“There are also a number of further improvements in development, so watch this space”.

Ajay Pabari, CEO of Spread Co added, “We have also expanded our product offering, with additional currency pairs, ETFs and ADRs.

“In addition, we have lowered our Notional Trading Requirement on a large number of products. Spot Gold and US Crude Oil are down to just 80 points. That, together with the fact our Equity CFD commission is the lowest in the industry at just 0.075% and no minimum CFD ticket charge makes Spread Co one of the most complete and cost-effective spread betting and CFD providers around”.

For a review of the services offered, see Spread Co.

SpreadCo Offer

SpreadCo are now also challenging new account holders to beat their Head Trader with their new offer: “One Trade. £150. No Tears”.

For more details see: Spread Co Offer.

Spread Trading, Contracts for Difference and margin Foreign Exchange trading carry a high degree of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary.

Spread Co Limited which is authorised and regulated by the Financial Services Authority. Register No. 446677.

Good Luck!

DB