Where to Spread Bet on Cisco Systems?

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

• Financial Spread
• InterTrader
• IG Index

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

Spread Betting on Cisco Systems

If you are looking to speculate on US listed companies such as Cisco Systems then one possibility could be to place a spread bet on the Cisco Systems share price.

Looking at a spread betting site like Inter Trader, as of Thursday, they were showing the Cisco Systems Rolling Daily market at $17.95 – $17.99. As a result, you can spread bet on the Cisco Systems share price:

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

To learn more about Rolling Daily Markets please see Rolling Daily Spread Betting.

Cisco Systems Rolling Daily – US Shares Spread Betting Example

So, if you think about the spread of $17.95 – $17.99 and make the assumptions that:

• You have completed your analysis of the stock markets, and
• Your research leads you to think that the Cisco Systems share price will rise higher than $17.99

Then you may decide that you are going to buy at $17.99 for a stake of £4 per cent.

With such a spread bet you make a profit of £4 for every cent that the Cisco Systems shares go above $17.99. On the other hand, it also means you will lose £4 for every cent that the Cisco Systems market moves below $17.99.

Considering this from another angle, 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 market at. You then multiply that price difference by your stake.

With this in mind, if after a few sessions the stock started to increase then you might think about closing your trade so that you can guarantee your profit.

So if the shares spread betting market rose then the spread could change to $18.26 – $18.30. To settle/close your trade you would sell at $18.26. As a result, with the same £4 stake:

Your Profit / loss = (Closing Level – Opening Level) x stake
Your Profit / loss = ($18.26 – $17.99) x £4 per cent stake
Your Profit / loss = $0.27 x £4 per cent stake
Your Profit / loss = 27¢ x £4 per cent stake
Your Profit / loss = £108 profit

Speculating on equities, whether by spread trading or otherwise, is not always straightforward. With this example, you had bet that the share price would increase. Naturally, it could decrease.

If the Cisco Systems share price dropped then you could close your position to stop any further losses.

If the spread fell to $17.68 – $17.72 you would settle your position by selling at $17.68. So your loss would be calculated as:

Your Profit / loss = (Closing Level – Opening Level) x stake
Your Profit / loss = ($17.68 – $17.99) x £4 per cent stake
Your Profit / loss = -$0.31 x £4 per cent stake
Your Profit / loss = -31¢ x £4 per cent stake
Your Profit / loss = -£124 loss

Note: Cisco Systems Rolling Daily spread betting price quoted as of 15-Nov-12.

Cisco Systems Spread Betting – More Details

For more information on trading Cisco Systems, also see Cisco Systems 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.