Where to Spread Bet on St Modwen Properties?

You can spread bet on St Modwen Properties 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 St Modwen Properties

Should an investor decide to speculate on UK companies such as St Modwen Properties then one solution is a spread bet on the St Modwen Properties share price.

Looking at a spread trading platform like Tradefair, as of Friday, they were showing the St Modwen Properties Rolling Daily market at 246.2p – 249.3p. Therefore, an investor can spread trade on the St Modwen Properties shares:

• Increasing above 249.3p, or
• Decreasing below 246.2p

When financial spread betting on FTSE 350 equities you trade in £x per penny. As a result, if you decided to have a stake of £5 per penny and the St Modwen Properties shares move 27p then that would alter your profits (or losses) by £135. £5 per penny x 27p = £135.

Rolling Daily Shares Markets

It is important to note that this is a Rolling Daily Market and so there is no preset closing date for this market. If you leave your position open at the end of the day, it just rolls over into the next session.

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

• Move higher – then you are charged a small overnight financing fee, or
• Move lower – then a small payment is normally credited to your account

You can learn more in our feature Rolling Daily Spread Betting.

St Modwen Properties Rolling Daily Shares Spread Betting Example

So, if you think about the spread of 246.2p – 249.3p and make the assumptions that:

• You have analysed the company, and
• Your research leads you to feel the St Modwen Properties shares are likely to increase and go above 249.3p

Then you could choose to buy at 249.3p for a stake of, for the sake of argument, £15 per penny.

Therefore, you win £15 for every penny that the St Modwen Properties shares go higher than 249.3p. Having said that, such a bet also means that you will lose £15 for every penny that the St Modwen Properties market falls lower than 249.3p.

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 settlement price of the market and the price you bought the market at. You then multiply that difference in price by the stake.

As a result, if the stock started to increase then you might want to close your spread bet so that you can lock in your profit.

Taking this a step further, if the market rose then the spread could change to 257.4p – 260.5p. In order to close your spread bet you would sell at 257.4p. So, with the same £15 stake you would make a profit of:

Your profit / loss = (Final Level – Initial Level) x stake
Your profit / loss = (257.4p – 249.3p) x £15 per penny stake
Your profit / loss = 8.1p x £15 per penny stake
Your profit / loss = £121.50 profit

Speculating on equities, whether by spread trading or not, doesn’t always go to plan. In this case, you wanted the share price to increase. Naturally, the share price could decrease.

If the St Modwen Properties shares fell then you could choose to close your trade in order to limit your losses.

Should the spread drop to 240.1p – 243.2p then this means you would settle/close your trade by selling at 240.1p. Therefore, you would make a loss of:

Your profit / loss = (Final Level – Initial Level) x stake
Your profit / loss = (240.1p – 249.3p) x £15 per penny stake
Your profit / loss = -9.2p x £15 per penny stake
Your profit / loss = -£138.00 loss

Note – St Modwen Properties Rolling Daily equities market quoted as of 01-Mar-13.

St Modwen Properties Spread Betting – More Details

For more information on trading St Modwen Properties, also see St Modwen Properties 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.