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Guide to Spread Trading on Alent

Where to Spread Bet on Alent?

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

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

Spread Betting on Alent

If an investor is looking to invest in UK listed companies such as Alent then one option is to spread trade on the Alent share price.

Looking at InterTrader, as of Friday, they were showing the Alent Rolling Daily market at 326.6p – 329.3p. As a result, you could spread bet on the Alent share price:

  • Moving above 329.3p, or
  • Moving below 326.6p

Whilst financial spread trading on UK shares you trade in £x per penny. So, if you chose to invest £2 per penny and the Alent share price moves 37p then there would be a difference to your P&L of £74. £2 per penny x 37p = £74.

Rolling Daily Shares Markets

Be aware that this is a Rolling Daily Market and so there is no preset settlement date for this market. Therefore, if you decide not to close your trade by the end of the day, it will roll over to the next session.

If you do roll over a position and you are spread betting that the market will:

  • Increase – then you will be charged a small overnight financing fee, or
  • Decrease – then you’ll usually receive a small credit to your account

To learn more please read Rolling Daily Spread Betting.

Alent Rolling Daily Shares Trading Example

Now, if we think about the spread of 326.6p – 329.3p and make the assumptions that:

  • You’ve analysed the sector, and
  • You think that the Alent share price looks like it will push higher than 329.3p

Then you might decide that you are going to buy at 329.3p for a stake of, for the sake of argument, £10 per penny.

So, you gain £10 for every penny that the Alent shares increase and move above 329.3p. On the other hand, you will make a loss of £10 for every penny that the Alent market falls lower than 329.3p.

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

With this in mind, if after a few sessions the stock started to increase then you might want to close your trade in order to lock in your profit.

Taking this a step further, if the market rose then the spread, set by the spread trading firm, might move up to 340.8p – 343.5p. You would close your position by selling at 340.8p. So, with the same £10 stake your profit would come to:

Profit / loss = (Final Price – Opening Price) x stake
Profit / loss = (340.8p – 329.3p) x £10 per penny stake
Profit / loss = 11.5p x £10 per penny stake
Profit / loss = £115.00 profit

Financial spread betting is not easy. In the above example, you had bet that the share price would rise. Nevertheless, it can also go down.

If the Alent share price decreased, contrary to your expectations, then you could close your position in order to restrict your losses.

Should the market fall back to 316.1p – 318.8p then you would settle your trade by selling at 316.1p. Accordingly, your loss would be:

Profit / loss = (Final Price – Opening Price) x stake
Profit / loss = (316.1p – 329.3p) x £10 per penny stake
Profit / loss = -13.2p x £10 per penny stake
Profit / loss = -£132.00 loss

Note: Alent Rolling Daily equities market correct as of 04-Jan-13.

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.



Risk Warning