You might also be able to trade the FTSE 100 on other spread betting websites.
UK Stock Market Analysis and Trading News
[4:05pm] The FTSE has continued to claw back lost ground as it battles to break back above 6800.
European equity market enthusiasm continues to be tempered, possibly due to the knowledge that tomorrow morning will bring a plethora of manufacturing PMI data from across the Eurozone nations, and these have not always guaranteed good news of late.
Any chance the FTSE had of easing itself away from the 6800 level have been anchored by the profit warning from GlaxoSmithKline's second-quarter figures, as the drugs manufacturers profits have been badly hit by a number of patents and an underperforming drug for lungs.
After seeing its first-half profits jump by 16%, Capita Group, the UK-based services company, looks to be underplaying its hand a little in simply confirming that it is 'optimistic' in meeting full-year targets.
Having enjoyed an eye-watering selection of US equities reporting over the last couple of weeks, a little more attention can be focused back on the UK tomorrow.
We have the likes of easyJet, Unilever, SABMiller, Kingfisher, Tate & Lyle and Hammerson all updating the markets with figures or trading updates.
Update by Alastair McCaig, Market Analyst,
[3:58pm] European Stock Markets
European stocks continued to claw back some gains after tougher Russian sanctions from the EU failed to materialise from the meeting in Brussels yesterday as Ukrainian rebels appear more cooperative surrounding the crash site in Donetsk.
There were no dissenting voices at the Bank of England, with voting remaining 9-0 in favour of keeping rates unchanged.
One of the bigger takeaways from the minutes was that some MPC members said the risk of a rate rise derailing the UK recovery has receded.
Governor Carney in his speech later in the day elaborated saying 'The MPC is balancing the implications for inflation of hard evidence of sustained economic momentum against conflicting signals over the degree of slack in the labour market.'
The FTSE 100 rallied early on after strong results from Capita, BHP Billiton and Renishaw but reversed gains as price approached the low from 7 July driven lower by a miss on the top and bottom line from GlaxoSmithKline.
China is one of the biggest growth area for pharmaceutical companies these days so the 20% drop in China sales after the bribery allegations have hit the company hard.
Update by Jasper Lawler, Market Analyst,
[2:24pm] Stocks remain lightly traded this afternoon, as investor flow continues to temper in the wake of the effect of geopolitical tensions on financial markets.
The appetite for risk, while measured, finds itself matched at these levels for the time being.
The FTSE 100 is largely unchanged at 6,800, with the Xetra DAX gaining almost 0.5% in afternoon trading.
The Dow is opening relatively unchanged, too.
Big winners on the London main market today are Renishaw and Kazakhmys, up 19% and 6.2% respectively.
Renishaw delighted shareholders this morning by posting a 17% increase to pre-tax profit, encouraging plenty of buy orders by the open.
The big loser today is Glaxo, after dealers marked the stock lower on poorly received results and a profit warning.
Shares continue to decline down below 1500p, down 6.3% now.
Update by David White, Trader,
Best Year for AIM IPOs Since 2007?
In this trading video, IG take a look at why this year is proving to be so good for AIM market floatations.
[10:09am] A tentative move above the 6800 level for the FTSE removes the latest hurdle in its rally, although Bank of England minutes provided no surprise.
Markets have eased off after the gains of yesterday, content to consolidate around these levels after all the volatility of the past week.
Signs of division in European capitals reduced the chance of further organised sanctions against Russia, but there is still a faint chance that they will pull something together at the last minute, applying some Eurozone crisis management to the situation.
SSE and LSE have gone ex-dividend today, knocking a modest amount off the morning gains, but it was Capita that stole the limelight with a bullish update that points towards a strong year ahead.
The shares have spiked over 3% to all-time highs, as investors got behind the Chief Executive's plan for the year ahead.
Yet again the BoE minutes were a source of little excitement in voting terms, but a subtle shift does seem to be underway below the surface, as the recovery looks to become more established some committee members have become less anxious about a potential rate rise.
GBP/USD continued to drift in the wake of the minutes but the general course of events does point towards a $1.72 reading here in due course.
Update by Chris Beauchamp, Market Analyst,
European, UK and US Earnings Lift Stocks
With geopolitical events taking more of a back seat, indices have moved higher as some of the risk premium is taken out.
Strong results from ARM Holdings and Actelion have helped lift stocks, with mixed revenues from Apple and Microsoft overnight.
Update by Mark Priest, Market Analyst,
FTSE 100 Daily Market Report
The FTSE 100 is currently trading at 6,791.8.
Overnight, the market closed up 38.3pts (0.57%) at 6,772.9.
30 Minute Chart Analysis
The stock market index is currently higher than the 20-period MA of 6,777.0 and higher than the 50-period MA of 6,780.3.
1 Day Chart Analysis
The stock market index is trading higher than the 20-day MA of 6,763.6 and lower than the 50-day MA of 6,798.9.
Update by Gordon Childs, Editor,
[7:38am] UK Shares - Crossing Over their 50 Day Moving Average:
Afren (+2.36% to 147.7p)
Barratt Developments (+4.04% to 368.5p)
Great Portland Estates (+1.87% to 652.5p)
IG Group (+7.74% to 619.5p)
Inchcape (+1.6% to 634p)
Investec Plc (+2.68% to 536.5p)
Land Securities (+2.04% to 1051p)
London Stock Exchange (+1.78% to 1946p)
Polyus Gold International (+2.55% to 190.75p)
Persimmon (+4.49% to 1302p)
Reckitt Benckiser (+1.5% to 5090p)
Rentokil Initial (+1.89% to 118.3p)
Segro Plc (+1.38% to 359.5p)
St James's Place Capital (+3.2% to 774.5p)
TalkTalk Telecom (+2.33% to 320p)
Unilever (+1.74% to 2688p)
[7:38am] FTSE 100 Technical Analysis (30 mins chart)
FTSE 100 pivot point: 6665
Our preference: Long positions above 6665 with targets @ 6755 & 6774 in extension.
Alternative scenario: Below 6665 look for further downside with 6644 & 6615 as targets.
Comment: The RSI is above its neutrality area at 50%.
[7:35am] Asian stocks gained throughout the night, following on from the positive day seen in Europe and America whilst geopolitical tensions throughout the world continue to act as a catalyst for movements in global markets.
The Australian dollar bounced off the back of the inflation figure that was released which shows a 0.5% rise in consumer prices in June.
European markets look set to open slightly softer this morning after yesterday's gains with the FTSE 100 down 15 points and the German DAX down 10 prior to the open later this morning.
We have a fairly mixed economic calendar for today with the UK kick-starting proceedings as MPC asset purchase votes and official bank rate votes are released at 09:30am.
Investors will however be awaiting Bank of England Governor Mark Carney who is set to speak at 12:45pm at the Commonwealth Games Trade & Investment Conference.
Carney often causes high levels of volatility in markets as investors attempt to decipher any changes to interest rates.
You can also use a spreads account to access shorter-term daily FTSE markets. Readers should note that opening such an account is normally subject to suitability and status checks.
If your account application is accepted then, once logged in, you will be able to access the charts and the current prices. Access is normally free, however, the catch is that you could get the odd sales letter or email from your firm.
Of course, if you do decide to trade, be aware that spread trading and contracts for difference carry a high degree of risk and you may lose more than your initial deposit.
Advanced Charts for the FTSE 100
Although the charting packages normally differ from platform to platform, in order to assist you with your FTSE 100 analysis, most charts generally have:
A large range of time intervals - 1 minute, 2 minute, 10 minute, 1 hour, 4 hour, 1 month etc
A variety of chart types - candlestick, line and OHCL charts
Drawing tools and features - Fibonacci Time Zones, Arcs and Fans
If you are interested in a free Test Account which allows users to get a better understanding of financial spread betting, and practice trading markets like the FTSE 100, then you could always take a look at:
All of the above companies provide a Demo Account that lets users practice trading, apply a variety of orders, try out strategies and review charts.
How to Spread Bet on the FTSE 100?
As with many global markets, investors can spread bet on stock market indices, like the FTSE 100, to either rise or fall.
If we log on to Financial Spreads, we can see they are showing the FTSE 100 Rolling Daily market at 5785.3 - 5786.3. This means an investor can spread bet on the FTSE 100 market:
Going above 5786.3, or
Going below 5785.3
When spread betting on the FTSE 100 index you trade in £x per point.
Where a point is one point of the index itself.
Should you choose to invest £4 per point and the FTSE 100 moves 24 points then that would alter your profit/loss by £96. £4 per point x 24 points = £96.
Rolling Daily Index Markets
An important aspect of this Rolling Daily Market is that there is no closing date for your trade. You do not have to close your trade, should it still be open at the end of the day, it will roll over to the next session.
If you allow your trade to roll over and are spread betting on the market to:
Increase - then you will be charged a small overnight financing fee, or
Decrease - then a small payment is normally credited to your account
So, if we take the above spread of 5785.3 - 5786.3 and assume:
You have analysed the indices markets, and
You feel that the FTSE 100 index will rise above 5786.3
Then you could decide that you want to buy a spread bet at 5786.3 and risk, let's say, £2 per point.
With this trade you make a profit of £2 for every point that the FTSE 100 index moves higher than 5786.3. However, it also means that you will make a loss of £2 for every point that the FTSE 100 market moves below 5786.3.
Considering this from another angle, should you 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 initial price you bought the market at. You then multiply that difference in price by your stake.
Therefore, if after a few trading sessions the UK stock market rose, you might want to close your position to lock in your profit.
So if the stock market increased then the spread, set by the spread betting company, might move up to 5849.4 - 5850.4. In order to close your position you would sell at 5849.4. Accordingly, with the same £2 stake:
P&L = (Closing Price - Opening Price) x stake
P&L = (5849.4 - 5786.3) x £2 per point stake
P&L = 63.1 x £2 per point stake
P&L = £126.20 profit
Speculating on stock market indices, whether by spread betting or not, doesn't always work out. In this example, you had bet that the index would go up. Nevertheless, it might go down.
If the FTSE 100 index began to drop then you might choose to close your spread bet in order to restrict your losses.
Should the market pull back to 5731.9 - 5732.9 then you would close your spread bet by selling at 5731.9. If so, you would lose:
P&L = (Closing Price - Opening Price) x stake
P&L = (5731.9 - 5786.3) x £2 per point stake
P&L = -54.4 x £2 per point stake
P&L = -£108.80 loss
Note - FTSE 100 Rolling Daily prices as of 1-Oct-12.
Below we have a simple interactive example from Financial Spreads on how spread betting works when trading the FTSE 100.
This quick example shows how the Stop Loss works and also how your upside is unlimited.
Note that Stop Losses are not guaranteed but you can opt for a Guaranteed Stop Loss with Financial Spreads.
How to Spread Bet on the UK 100 - Example 2
Looking at a spread trading website like Tradefair, we can see that they are showing the UK 100 Rolling Daily market at 5787.8 - 5788.8. This means an investor can spread bet on the UK 100 market:
Rising above 5788.8, or
Falling below 5787.8
Whilst financial spread betting on the UK 100 index you trade in £x per point. So, should you decide to risk £5 per point and the UK 100 moves 27 points then that would make a difference to your bottom line of £135. £5 per point x 27 points = £135.
So, if you continue with the above spread of 5787.8 - 5788.8 and assume that:
You have done your research, and
Your research suggests that the UK 100 index will move higher than 5788.8
Then you might decide that you want to go long of the market at 5788.8 and risk, for the sake of argument, £3 per point.
So, you make a profit of £3 for every point that the UK 100 index moves above 5788.8. However, such a bet also means that you will lose £3 for every point that the UK 100 market decreases below 5788.8.
Looked at another way, if you ‘Buy’ a spread bet then your profit/loss is calculated by taking the difference between the settlement price of the market and the price you bought the market at. You then multiply that difference in price by your stake.
As a result, if after a few sessions the UK stock market started to move upwards then you could choose to close your trade in order to guarantee your profit.
So if the market moved up then the spread might change to 5831.6 - 5832.6. You would close your position by selling at 5831.6. Therefore, with the same £3 stake your profit would be calculated as:
Profits (or losses) = (Closing Value - Initial Value) x stake
Profits (or losses) = (5831.6 - 5788.8) x £3 per point stake
Profits (or losses) = 42.8 x £3 per point stake
Profits (or losses) = £128.40 profit
Financial spread trading doesn't always work out as you would have liked. In this case, you wanted the UK index to rise. Nevertheless, it might decrease.
If the UK 100 index decreased, contrary to your expectations, then you might decide to close/settle your trade to limit your losses.
So if the spread fell to 5751.2 - 5752.2 you would close your trade by selling at 5751.2. Accordingly, your loss would be:
Profits (or losses) = (Closing Value - Initial Value) x stake
Profits (or losses) = (5751.2 - 5788.8) x £3 per point stake
Profits (or losses) = -37.6 x £3 per point stake
Profits (or losses) = -£112.80 loss
Note: UK 100 Rolling Daily spread betting market accurate as of 28-Nov-12.
How to Trade FTSE Futures
If we go to a platform like FinancialSpreads, you can see that they are currently pricing the FTSE 100 March Futures market at 5717.3 - 5721.3.
Therefore, you can speculate on the FTSE 100 index:
Settling above 5721.3, or
Settling below 5717.3
On the expiry date for this 'March' futures market, 15-Mar-13.
As with the daily markets above, with the FTSE futures market you speculate on the FTSE 100 index in £x per point. So, if you decided to have a stake of £4 per point and the FTSE 100 moves 35 points then that would alter your profits (or losses) by £140. £4 per point x 35 points = £140.
FTSE 100 Futures Trading Example
If we think about the spread of 5717.3 - 5721.3 and assume that:
You have analysed the UK stock market, and
Your analysis suggests the UK index will finish above 5721.3 by 15-Mar-13
Then you may decide to buy the futures market at 5721.3 and risk, let's say, £5 per point.
With this contract you make a profit of £5 for every point that the FTSE 100 index rises higher than 5721.3. Nevertheless, it also means that you will make a loss of £5 for every point that the FTSE 100 market moves lower than 5721.3.
Thinking of this in a slightly different way, if you are spread trading and you 'Buy' a market then your P&L is calculated by taking the difference between the settlement price of the market and the initial price you bought the spread at. You then multiply that price difference by the stake.
As a result, if, on the expiry date, the FTSE 100 settled higher at 5749.9, then:
P&L = (Closing Price - Opening Price) x stake
P&L = (5749.9 - 5721.3) x £5 per point stake
P&L = 28.6 x £5 per point stake
P&L = £143.00 profit
Trading UK stock market futures is not always easy. With this example, you thought the index would increase. Nevertheless, the UK stock market could fall.
If the FTSE 100 fell and settled lower at 5696.4, you would end up making a loss on this trade.
P&L = (Closing Price - Opening Price) x stake
P&L = (5696.4 - 5721.3) x £5 per point stake
P&L = -24.9 x £5 per point stake
P&L = -£124.50 loss
Note - FTSE 100 March Futures market correct as of 27-Sep-12.
Financial Spread Betting on FTSE 100 Companies
Simply click on the company you're interested in spread betting on.
As well as broker ratings, indicative prices and charts, we talk you through the most popular spread betting questions for the UK firm:
Below, an old but still useful case study on the UK stock market by Shai Heffetz, InterTrader, 28-Apr-2011.
Being an index of the 100 biggest companies on the London Stock Exchange, the FTSE 100 is considered a quite reliable yardstick of the health of the economy in general.
If one looks at the period since the index started at 1000 on the 1st of January 1984, the picture certainly looks healthy. The current value of 6041 represents growth of more than 500 per cent over the 27-year term.
The fact of the matter is, however, that the index is currently well below the record level of 6950.6 it reached in December 1999, which means that in effect we have seen negative growth over the past 12 years.
FTSE 100 Technical Analysis
If we consider technical analysis of the FTSE 100 then, looking at the Ichimoku Kinko Hyo on the candlestick chart below, everything seems to point to a bull market as the price is far above the cloud.
It is also well above the red Tenkan-Sen (short-term average) and the blue Kijun-Sen (longer-term average). The green Chinkou Span line is also well above the price 26 days ago, strengthening the perception of a bull market.
There are, however, a couple of things that could indicate that we should not jump to conclusions. The red Tenkan-Sen has turned flat, which indicates short-term uncertainty in the market, and the cloud is also very thin, which further points to indecisiveness in the market.
If the price should break through the recent high of 6064.80, we might see it test the previous high of 6106.80 it reached on 8 February. A cautious trader would not enter a medium or long-term position long position before this happens. A potential stop loss level in this case is the red Tenkan-Sen line.
In the current market, traders should wait for further signs of weakness before entering into a short position. If the price drops as far as the Ichimoku cloud, it could be on its way to test the previous low of 5505.30 on 16 March.
A careful trader will wait for the price to break downwards out of the cloud before going short, but this could rob you of most of the profits in the swing trade. An alternative, but riskier, approach would be to go short as soon as the price drops below the blue Kijun-Sen.
The London Stock Exchange (LSE) is one of the world's oldest stock exchanges. It's been trading for over 300 years. According to the LSE website it started life in the coffee houses of 17th century London (pre-Starbucks).
For readers who are not familiar with the term 'FTSE 100' it is simply an index of the 100 largest companies on the London Stock Exchange. The index is maintained and owned jointly by the Financial Times and the London Stock Exchange.
The index came into being on 1 January 1984 with a base value of 1,000. It reached a record level of 6950.6 on 30 December 1999. The financial crisis of 2007–2010 saw it drop dramatically to 3,500. Since then it has recovered to a large extent.
FTSE: Financial Times Stock Exchange. These firms (FT and LSE) are jointly responsible for the compilation and maintenance of the main stock indices reflecting the performance of the UK's top shares
FTSE 100: The index of the UK's top 100 companies, as ranked by their market capitalisation. Also referred to as UK100
FTSE 250 or FTSE MID 250: The index of the next 250 FTSE companies as ranked by their market capitalisation
FTSE 350: The index of the top 350 UK companies by market capitalisation. A combination of the FTSE 100 and FTSE 250 stocks
FTSE ALL SHARE: An index covering about 800 shares representing 98% of UK stock market value
UK 100: In spread betting and CFD trading, the FTSE 100 is often called the 'UK 100'
'FTSE 100 Spread Betting' edited by Jacob Wood, updated 23-Jul-14
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FTSE 100 Spread Betting
FTSE 100 financial spread betting guide with a price comparison and daily analysis. Plus live FTSE 100 charts & prices, where to spread bet on the stock market index commission-free and... » read from top.