Guide to Online Spread Trading on Standard Life
Where to Spread Bet on Standard Life?
You can spread bet on Standard Life with any of the following companies:
Although note that you can also spread bet with other Spread Betting Companies.
Spread Betting on Standard Life
Should an investor want to speculate on companies like Standard Life then one option could be to spread trade on the Standard Life share price.
Looking at the Tradefair site, as of Friday, they were showing the Standard Life Rolling Daily market at 276.8p – 277.3p. Therefore, an investor can spread bet on the Standard Life shares:
- Rising above 277.3p, or
- Falling below 276.8p
Whilst financial spread betting on FTSE 350 shares you trade in £x per penny. As a result, if you invested £20 per penny and the Standard Life share price moves 5p then there would be a difference to your profits (or losses) of £100. £20 per penny x 5p = £100.
Rolling Daily Equities Markets
It is important to note that this is a Rolling Daily Market and so unlike a futures market, there is no settlement date. Should your trade be left open at the end of the trading day, it will simply roll over to the next trading day.
Should your position roll over, if you are speculating that the market will:
- Increase – then you will pay a small overnight financing fee, or
- Decrease – then a small payment will usually be 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.
Standard Life Rolling Daily Equities Spread Betting Example
So, if we consider the above spread of 276.8p – 277.3p and make the assumptions:
- you have done your analysis, and
- you think that the Standard Life shares are likely to push higher than 277.3p
then you might go long of the market at 277.3p and risk, for the sake of argument, £10 per penny.
With such a spread bet you make a profit of £10 for every penny that the Standard Life shares go above 277.3p. Of course, you will make a loss of £10 for every penny that the Standard Life market goes below 277.3p.
Looking at this from another angle, if you were to ‘Buy’ a spread bet then your profits (or losses) are 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 difference in price by your stake.
If after a few days the stock moved higher then you might want to close your trade to lock in your profit.
Therefore, if the online spread trading market moved up then the spread might move to 285.6p – 286.1p. In order to close/settle your position you would sell at 285.6p. So, with the same £10 stake your profit would be calculated as:
Profit / loss = (Settlement Price – Opening Price) x stake
Profit / loss = (285.6p – 277.3p) x £10 per penny stake
Profit / loss = 8.3p x £10 per penny stake
Profit / loss = £83.00 profit
Speculating on shares, whether by spread betting or not, is not always simple. In the above example, you had bet that the share price would increase. Nevertheless, it could fall.
If the Standard Life shares had started to fall then you could choose to close your spread bet to limit your losses.
Should the spread pull back to 267.6p – 268.1p then this means you would close your position by selling at 267.6p. If so, your loss would be calculated as:
Profit / loss = (Settlement Price – Opening Price) x stake
Profit / loss = (267.6p – 277.3p) x £10 per penny stake
Profit / loss = -9.7p x £10 per penny stake
Profit / loss = -£97.00 loss
Note: Standard Life Rolling Daily spread betting market accurate as of 17-Aug-12.
Standard Life Spread Betting – More Details
For more information on trading Standard Life, also see Standard Life 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.
2 comments
Quote from Benjamin M. Lawsky, Superintendent of the NY State Department of Financial Services "For almost ten years, SCB [(Standard Chartered Bank)] schemed with the Government of Iran and hid from regulators roughly 60,000 secret transactions, involving at least $250 billion, and reaping SCB hundreds of millions of dollars in fees. SCB‟s actions left the U.S. financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity" http://www.dfs.ny.gov/banking/ea120806.pdf
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