Guide to Spread Trading on JC Penney
Where to Spread Bet on JC Penney?
You can spread bet on JC Penney with any of the following companies:
Although note that you can also spread bet with other Spread Betting Companies.
Spread Betting on JC Penney
Should an investor decide to invest in US listed companies like JC Penney then one possibility could be to place a spread bet on the JC Penney share price.
Looking at a site like Financial Spreads, as of Friday, they were showing the JC Penney Rolling Daily market at $20.33 – $20.43. Therefore, you can spread bet on the JC Penney shares:
- Going higher than $20.43, or
- Going lower than $20.33
When spread trading on US shares you trade in £x per cent. As a result, if you invest £3 per cent and the JC Penney share price changes by $0.31 then that would make a difference to your profit/loss of £93. £3 per cent x $0.31 = £93.
You can also invest in this market in Dollars or Euros, e.g. €x per cent.
Rolling Daily Shares Markets
An important aspect of this Rolling Daily Market is that in contrast with futures markets, there is no closing date. If your trade is still open at the end of the trading day, it just rolls over into the next session.
If your position is rolled over and you are speculating that the market will:
- Rise – then you’ll be charged a small overnight financing fee, or
- Fall – then you will usually receive a small credit to your account
For a fully worked example see Rolling Daily Spread Betting.
JC Penney Rolling Daily – US Equities Spread Trading Example
So, if you continue with the spread of $20.33 – $20.43 and assume:
- You’ve analysed the sector, and
- Your analysis leads you to feel the JC Penney share price looks like it will go higher than $20.43
Then you may decide that you want to buy a spread bet at $20.43 and risk, for the sake of argument, £4 per cent.
So, you make a profit of £4 for every cent that the JC Penney shares increase and move above $20.43. Nevertheless, you will lose £4 for every cent that the JC Penney market decreases lower than $20.43.
Looking at this from another angle, if you ‘Buy’ a spread bet then your profits (or losses) are 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 difference in price by your stake.
As a result, if after a few hours the shares moved higher then you might want to close your position and therefore lock in your profits.
Taking this a step further, if the market did go up then the spread could change to $20.78 – $20.88. In order to close your spread bet you would sell at $20.78. So, with the same £4 stake you would make a profit of:
Profit = (Closing Price – Opening Price) x stake
Profit = ($20.78 – $20.43) x £4 per cent stake
Profit = $0.35 x £4 per cent stake
Profit = 35¢ x £4 per cent stake
Profit = £140 profit
Trading equities, whether by spread trading or otherwise, is not easy. In this case, you had bet that the share price would increase. Naturally, the share price could decrease.
If the JC Penney share price weakened, against your expectations, then you could choose to close your trade to stop any further losses.
Should the market drop to $20.11 – $20.21 you would settle your spread bet by selling at $20.11. That would mean you would make a loss of:
Loss = (Closing Price – Opening Price) x stake
Loss = ($20.11 – $20.43) x £4 per cent stake
Loss = -$0.32 x £4 per cent stake
Loss = -32¢ x £4 per cent stake
Loss = -£128 loss
Note: JC Penney Rolling Daily spread accurate as of 01-Feb-13.
Live JC Penney Spread Betting Prices and Charts
The live CFD trading chart below will offer you a useful look at the JC Penney share price.
The above chart is provided by Plus 500 and normally tracks the JC Penney futures price (not the daily market).
If you would like to study real-time financial spread betting charts and prices for JC Penney, you will need to apply for a spread betting account.
You can also use a spreads account to trade shorter-term daily prices. Please note that such accounts are subject to status and suitability checks.
Should your new account be approved then, when you log on, you will be able to see the prices and charts. On most platforms, these are provided as part of the service, however, you’ll probably get the occasional call or email from your spread trading provider.
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.