Guide to Financial Spread Trading on Apple Shares
Where to Spread Bet on Apple?
You can spread bet on Apple with any of the following companies:
Although note that you can also spread bet with other Spread Betting Companies.
Spread Betting on Apple
Should you want to speculate on companies such as Apple then one solution could be spread betting on the Apple share price.
Looking at a website like Capitalspreads, as of Friday, they were showing the Apple Rolling Daily market at $451.00 – $451.78. Therefore, an investor could spread bet on the Apple share price:
- Increasing higher than $451.78, or
- Decreasing lower than $451.00
When financial spread trading on US equities you trade in £x per cent. As a result, if you invest £3 per cent and the Apple share price moves $0.39 then there would be a difference to your P&L of £117. £3 per cent x $0.39 = £117.
You are also able to invest in this market in Euros or Dollars, e.g. €x per cent.
Rolling Daily Shares Markets
One thing to note is that this is a Rolling Daily Market which means that there is no settlement date for this market. If your trade is still open at the end of the trading day, it simply rolls over to the next trading day.
If your position does roll over and you are speculating on the market to:
- Move up – then you are normally charged a small financing fee, or
- Move down – then a small payment will usually be credited to your account
To find out more about Rolling Daily Markets read our feature Rolling Daily Spread Betting.
Apple Rolling Daily – US Equities Spread Betting Example
Now, if you consider the above spread of $451.00 – $451.78 and make the assumptions that:
- You have completed your analysis, and
- Your research suggests that the Apple share price will go higher than $451.78
Then you may decide that you want to buy at $451.78 and invest, let’s say, £1 per cent.
With such a bet you win £1 for every cent that the Apple shares increase and move above $451.78. Of course, it also means that you will make a loss of £1 for every cent that the Apple market falls lower than $451.78.
Looked at another way, should you ‘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 price difference by your stake.
Therefore, if after a few days the shares started to rise you might decide to close your spread bet so that you can secure your profit.
As an example, should the market rise, the spread, set by the spread trading firm, might move up to $453.70 – $454.48. In order to close/settle your position you would sell at $453.70. Accordingly, with the same £1 stake you would calculate your profit as:
P&L = (Final Price – Opening Price) x stake
P&L = ($453.70 – $451.78) x £1 per cent stake
P&L = $1.92 x £1 per cent stake
P&L = 192¢ x £1 per cent stake
P&L = £192 profit
Trading equities, whether by spread betting or not, is not always simple. In this example, you had bet that the share price would rise. Naturally, the share price can also go down.
If the Apple stock fell then you might choose to close your position in order to restrict your losses.
If the spread dropped to $449.70 – $450.48 then this means you would sell back your position at $449.70. Therefore, you would make a loss of:
P&L = (Final Price – Opening Price) x stake
P&L = ($449.70 – $451.78) x £1 per cent stake
P&L = -$2.08 x £1 per cent stake
P&L = -208¢ x £1 per cent stake
P&L = -£208 loss
Note: Apple Rolling Daily spread betting market accurate as of 25-Jan-13.
Live Apple Spread Betting Prices and Charts
The following CFD chart gives you a helpful look at the Apple share price.
The Plus 500 chart above usually follows the underlying Apple futures price.
Should you want access to real time spread trading charts/prices for Apple, an option is to use a spread trading account.
A spreads account would also give you access to the shorter-term spot markets. Users should note that such accounts are normally dependent on status, credit and suitability checks.
If your application is accepted then you will be able to log in and analyse the real time charts/prices. On most platforms, these will be provided for free, however, the catch is that you could receive an occasional sales email or call from the relevant financial spread betting company.
Apple Spread Betting – More Details
For more information on trading Apple, also see Apple Spread Betting.
Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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.