Where to Spread Bet on Bovis Homes?

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

• Financial Spreads
• Tradefair
• IGIndex

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

Spread Betting on Bovis Homes

If you are looking to invest in companies such as Bovis Homes then one solution could be spread betting on the Bovis Homes share price.

Logging onto Capitalspreads, as of Friday, they were showing the Bovis Homes Rolling Daily market at 627.7p – 630.8p. This means you can put a spread bet on the Bovis Homes shares:

• Rising above 630.8p, or
• Falling below 627.7p

When financial spread trading on FTSE 350 shares you trade in £x per penny. As a result, if you decide to invest £3 per penny and the Bovis Homes share price moves 22p then that would be a difference to your profits (or losses) of £66. £3 per penny x 22p = £66.

Rolling Daily Shares Markets

Be aware that this is a Rolling Daily Market which means that there is no closing date for this market. If you decide to leave your trade open at the end of the day, it will simply roll over to the next session.

If your spread bet is rolled over and you are speculating that the market will:

• Move higher – then you’ll be charged a small overnight financing fee, or
• Move lower – then you will often receive a small payment to your account

For more information on Rolling Daily Markets, and a fully worked example, please see Rolling Daily Spread Betting.

Bovis Homes Rolling Daily Equities Spread Trading Example

If we take the spread of 627.7p – 630.8p and make the assumptions:

• You have done your market analysis, and
• Your research leads you to feel that the Bovis Homes shares are likely to move above 630.8p

Then you could decide that you are going to go long of the market at 630.8p and risk, for the sake of argument, £5 per penny.

With such a bet you win £5 for every penny that the Bovis Homes shares increase and go higher than 630.8p. Nevertheless, you will make a loss of £5 for every penny that the Bovis Homes market goes below 630.8p.

Put another way, should 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 spread at. You then multiply that price difference by the stake.

With this in mind, if after a few days the shares rose then you might want to close your position in order to lock in your profit.

As an example, should the market rise, the spread, set by the spreads firm, might be adjusted to 652.6p – 655.7p. You would close your spread bet by selling at 652.6p. Therefore, with the same £5 stake:

Profit = (Closing Level – Opening Level) x stake
Profit = (652.6p – 630.8p) x £5 per penny stake
Profit = 21.8p x £5 per penny stake
Profit = £109.00 profit

Trading equities can fail to go to plan. With this example, you wanted the share price to rise. Of course, it can also fall.

If the Bovis Homes spread betting market had started to fall then you might choose to close your trade to limit your losses.

Should the spread drop to 605.6p – 608.7p then this means you would settle/close your trade by selling at 605.6p. As a result, your loss would be:

Loss = (Closing Level – Opening Level) x stake
Loss = (605.6p – 630.8p) x £5 per penny stake
Loss = -25.2p x £5 per penny stake
Loss = -£126.00 loss

Note: Bovis Homes Rolling Daily market accurate as of 18-Jan-13.

Bovis Homes Spread Betting – More Details

For more information on trading Bovis Homes, also see Bovis Homes 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.