Where to Spread Bet on Morgan Crucible?

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

• Financial Spreads
• Tradefair
• IG Index

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

Spread Betting on Morgan Crucible

Should an investor decide to invest in firms like Morgan Crucible then one solution is to spread trade on the Morgan Crucible share price.

If an investor was to look at the Tradefair spread betting site, as of Friday, they were showing the Morgan Crucible Rolling Daily market at 351.1p – 352.6p. As a result, you could spread bet on the Morgan Crucible share price:

• Increasing higher than 352.6p, or
• Decreasing lower than 351.1p

When financial spread trading on UK equities you trade in £x per penny. So, if you decide to have a stake of £10 per penny and the Morgan Crucible share price moves 5p then that would be a difference to your profit/loss of £50. £10 per penny x 5p = £50.

Rolling Daily Shares Markets

This is a Rolling Daily Market which means that there is no predetermined closing date for this market. If your position is still open at the end of the day, it will just roll over into the next day.

If you do let your position roll over into the next day and are spread betting on the market to:

• Increase – then you are normally charged a small financing fee, or
• Decrease – then a small payment is usually credited 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.

Morgan Crucible Rolling Daily Equities Spread Trading Example

So, if we consider the above spread of 351.1p – 352.6p and make the assumptions:

• you have done your analysis, and
• it leads you to think that the Morgan Crucible share price looks like it will move higher than 352.6p

then you may decide that you are going to buy at 352.6p and risk, for the sake of argument, £5 per penny.

So, you gain £5 for every penny that the Morgan Crucible shares push above 352.6p. On the other hand, such a bet also means you will make a loss of £5 for every penny that the Morgan Crucible market goes below 352.6p.

Looked at another way, if you ‘Buy’ a spread bet then your profit/loss is calculated 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 the stake.

If after a few sessions the share price started to rise you might decide to close your trade to lock in your profit.

Taking this a step further, if the market did go up then the spread, determined by the spread betting company, could be adjusted to 367.1p – 368.6p. To settle/close your trade you would sell at 367.1p. Therefore, with the same £5 stake:

Profits (or losses) = (Closing Price – Opening Price) x stake
Profits (or losses) = (367.1p – 352.6p) x £5 per penny stake
Profits (or losses) = 14.5p x £5 per penny stake
Profits (or losses) = £72.50 profit

Speculating on shares, by spread betting or otherwise, may not go to plan. With this example, you wanted the share price to increase. Of course, it could go down.

If the Morgan Crucible shares had fallen then you could choose to close your trade in order to restrict your losses.

Should the market fall back to 335.9p – 337.4p you would sell back your position at 335.9p. So your loss would be calculated as:

Profits (or losses) = (Closing Price – Opening Price) x stake
Profits (or losses) = (335.9p – 352.6p) x £5 per penny stake
Profits (or losses) = -16.7p x £5 per penny stake
Profits (or losses) = -£83.50 loss

Note – Morgan Crucible Rolling Daily spread betting market accurate as of 17-Feb-12.

Morgan Crucible Spread Betting – More Details

For more information on trading Morgan Crucible, also see Morgan Crucible 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.