Well it is taking a while and of course since we started this piece of work the FTSE 100 constituents have been moving to the FTSE 250 (eg Debenhams), taken off (eg Northern Rock) or Sold (eg ICI)…however we have been diligently ploughing on with creating a specific page for each FTSE 100 company…and we are now up to pages for 78 constituents…

What is it all about?

We want to create a simple reference point for you. A place where we offer some simple spread betting answers to your problems…eg looking at BAE…let’s say you want to spread bet on BAE…fine…but how?

We have some answers…

But how to spread bet on BAE?

We have some answers…

Q) Where can I Spread Bet on BAE?
Q) Where can I Trade for Free on BAE?
Q) How to Spread Bet on BAE?
Q) Where can I find Free Live Prices on BAE?
Q) Where can I find Free BAE Charts?

How to Spread Bet on BAE?

As with many financial markets, you can trade on the future price of shares, like BAE Systems shares, rising or falling. At the time of publication the BAE Systems (September) market is 498.1p - 500.5p with Financial Spreads. This market expires on 16-Sep-08.

Therefore you can spread bet on BAE shares settling: a) Above 500.5p, or b) Below 498.1p On the expiry date for this September futures market, 16-Sep-08.

When spread betting on FTSE 350 shares, you trade in £x per penny, where a penny is 1p of BAE Systems share price movement.

As an example if your stake was £10 per penny and the BAE shares move 4p then that would be a +/- £40 difference to your bottom line.

BAE Systems Spread Trading Example

Eg, let’s say, taking the above spread of 498.1p - 500.5p that you think the BAE Systems shares will rise above 500.5p on 16-Sep-08.

Therefore you could buy at 500.5p for a stake of, let’s say, £5 per penny.

And so let’s say that by the September closing date, the market closes at 548.p. If that happened then your P&L would be worked out as follows:

You take the difference between the final value of 548p and the opening price of 500.5p and then multiply that difference by the stake per penny of share price movement.

Profits = (548.0p - 500.5p) x £5 per penny stake.

= 47.5p x £5 per penny stake.

= £237.50 profit.

But had BAE Systems shares fallen and finished down at 455p, you would have lost.

= (455.0p - 500.5p) x £5 per penny stake.

Loss = -45.5p x £5 per penny stake. = -£227.50 loss.

Good Luck

DB

Clean Financial - Spread Betting