Spread Betting on Mid-Caps and Small-Caps
Note that, in spread betting and CFD trading, the FTSE 250 is often called the UK 250.
Where Can I Spread Bet on the FTSE 250? |
You can financial spread bet on the FTSE 250 stock index with:
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| Broker Ratings - Sponsored by IG |
Broker Ratings for FTSE 250 Companies |
Below are some of the more recent broker ratings for FTSE 250 firms. To drill down and see more ratings for a particular company, click on the company link.
For all the latest broker ratings also see Daily Broker Tips.
Spread Betting on FTSE 250 Companies |
If you are interesting in spread betting on UK Mid-Cap companies, we have some examples below.
Many of the companies have real-time charts and prices, we also walk you through the most popular spread betting questions for that Mid-Cap firm:
Financial Spread Betting on UK Small Caps |
With spread betting you can also trade 'Small Caps', although the spreads are sometimes quite wide for these companies.
There is a small list of Small Caps below, again we talk you through the popular trading questions for that company.
If we haven't prepared a page yet on your chosen company, simply contact us to let us know.
| Company Name | Symbol | FTSE 250 Shares Spread Betting Guides » |
Where Can I Spread Bet on the FTSE 250 for Free? |
Investing does involve risks. However, if you would like to open a completely free Test Account, which lets you try spread betting, please see below for further details.
When looking at which investment option might work for you, also remember that in the UK, spread trading is free of capital gains tax, income tax and stamp duty*.
If you want to try a free spread trading platform, note that you are able to take a position on the FTSE 250 with no brokers' fees or commissions with firms such as:
If you are looking for a completely free Demo Account that lets users try financial spread betting, including markets like EUR/USD, gold and the FTSE 250, then you could take a look at:
The above spread betting companies provide a free Practice Account that allows investors to try out new strategies, analyse professional charts and gain experience with an array of orders.
How to Spread Bet on the FTSE 250? |
As with a wide range of financial markets, it is possible to speculate on stock market indices, like the FTSE 250, to either increase or decrease.
Logging into InterTrader, we can see that they are currently showing the FTSE 250 Rolling Daily market at 11760 - 11790. Therefore, an investor could put a spread bet on the FTSE 250 market:
 Increasing above 11790, or
 Decreasing below 11760
When spread betting on the FTSE 250 index you trade in £x per point. Therefore, if you chose to invest £4 per point and the FTSE 250 moves 29 points then that would change your profit/loss by £116. £4 per point x 29 points = £116.
Rolling Daily Indices Markets
An important aspect of this Rolling Daily Market is that it does not have a set closing date. If you decide to leave your trade open at the end of the day, it will simply roll over to the next session.
If you allow your position to roll over and are spread betting on the market to:
Move higher - then you will usually be charged a small overnight financing fee, or
Move lower - then you'll usually receive a small credit to your account
To learn more please read Rolling Daily Spread Betting.
FTSE 250 Trading Example 1 |
Now, if we think about the spread of 11760 - 11790 and make the assumptions:
- You have done your analysis of the markets, and
- You think that the FTSE 250 index will increase and go higher than 11790
Then you could go long of the market at 11790 and risk, for the sake of argument, £2 per point.
With such a bet you make a profit of £2 for every point that the FTSE 250 index pushes above 11790. On the other hand, it also means you will make a loss of £2 for every point that the FTSE 250 market decreases below 11790.
Looking at this from another angle, should you ‘Buy’ a spread bet then your P&L is calculated by taking the difference between the closing price of the market and the initial price you bought the market at. You then multiply that price difference by the stake.
If after a few hours the UK stock market moved higher then you could consider closing your spread bet and therefore lock in your profits.
As an example, if the mid-cap index increased then the spread, set by the spread trading firm, might move up to 11867 - 11897. You would close/settle your spread bet by selling at 11867. Therefore, with the same £2 stake your profit would come to:
Profit = (Settlement Value - Initial Value) x stake
Profit = (11867 - 11790) x £2 per point stake
Profit = 77 x £2 per point stake
Profit = £154 profit
Trading indices, by spread betting or otherwise, can work against you. In this case, you wanted the UK index to go up. Nevertheless, the index could go down.
If the FTSE 250 index weakened, against your expectations, then you could choose to close your spread bet to stop any further losses.
Should the spread fall back to 11722 - 11752 then you would close your position by selling at 11722. That would mean you would make a loss of:
Loss = (Settlement Value - Initial Value) x stake
Loss = (11722 - 11790) x £2 per point stake
Loss = -68 x £2 per point stake
Loss = -£136 loss
Note: FTSE 250 Rolling Daily spread betting market taken as of 20-Nov-12.
Advert:
Spread Betting on Mid-Caps and Small-Caps, sponsored by FinancialSpreads.com.
You can spread bet on the FTSE 250 with
Financial Spreads.
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How to Spread Bet on the UK 250 - Example 2 |
Logging onto FinancialSpreads, you can see that they are pricing the UK 250 Rolling Daily market at 11757 - 11787. This means an investor can spread trade on the UK 250 index:
Rising above 11787, or
Falling below 11757
Whilst making a spread bet on the UK 250 index you trade in £x per point. As a result, if you staked £2 per point and the UK 250 moves 24 points then that would be a difference to your profit/loss of £48. £2 per point x 24 points = £48.
Now, if we think about the spread of 11757 - 11787 and assume that:
- You have done your research, and
- You think that the UK 250 index will move above 11787
Then you could decide that you are going to go long of the market at 11787 and invest, for example, £3 per point.
This means that you win £3 for every point that the UK 250 index increases higher than 11787. However, you will lose £3 for every point that the UK 250 market goes below 11787.
Put another way, should you buy a spread bet then your profits (or losses) are calculated by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that difference in price by the stake.
Therefore, if after a few trading sessions the UK stock market started to rise you might decide to close your trade in order to guarantee your profit.
As an example, if the market increased then the spread might move to 11834 - 11864. You would close your spread bet by selling at 11834. As a result, with the same £3 stake this trade would result in a profit of:
Profit / loss = (Closing Price - Opening Price) x stake
Profit / loss = (11834 - 11787) x £3 per point stake
Profit / loss = 47 x £3 per point stake
Profit / loss = £141 profit
Speculating on indices, by spread trading or otherwise, is not easy. In this example, you had bet that the UK index would increase. Naturally, the index could decrease.
If the UK 250 market began to drop then you could choose to close your spread bet to stop any further losses.
If the spread dropped to 11734 - 11764 then you would settle your trade by selling at 11734. Accordingly, your loss would be:
Profit / loss = (Closing Price - Opening Price) x stake
Profit / loss = (11734 - 11787) x £3 per point stake
Profit / loss = -53 x £3 per point stake
Profit / loss = -£159 loss
Note - UK 250 Rolling Daily spread correct as of 26-Sep-12.
Where Can I Find Live Prices and Charts for the FTSE 250? |
Should you want to check real-time trading charts/prices for the FTSE 250, you generally require a spread trading account. Readers should note that such accounts are subject to suitability and status checks.
Should your account application be approved then you will be able to log on and look at the live charts and prices. On most platforms, these will be provided as part of the service, however, you could receive the occasional letter or sales call from the relevant spread trading company.
If you want to spread bet then, before you start, you should note that spread trading involves a significant level of risk to your funds and it's possible to lose more than your initial deposit.
Although charting software and packages tend to vary across the industry, most charts come with useful features such as:
- A range of intervals, for example, 3 minutes, 1 hour, 1 day and so on
- A variety of display options, for example, bar, line and candlestick charts
- Tools for drawing features, for example, Fibonacci Arcs, Fans and Time Zones
- Chart overlays and technical indicators, for example, MACD, Parabolic SAR, TSI and so on
Charts provided by Inter Trader also include more advanced features like:
- Back Testing tools
- Customised email alerts that trigger when a market hits a particular level
Financial Spreads indices candlestick chart
The financial spread betting companies listed below offer clients live charts and prices:
Advert:
Spread Betting on Mid-Caps and Small-Caps, sponsored by FinancialSpreads.com.
You can spread bet on the FTSE 250 with
Financial Spreads.
|
UK Techmark Spread Betting |
You can currently spread bet on the UK Techmark at:
» IG Index
How to Spread Bet on the UK Techmark? |
As with most key markets, investors can speculate on stock market indices, such as the UK Techmark, to either rise or fall.
Looking at a website like IGIndex, you can see they are currently pricing the UK Techmark March Futures market at 2399 - 2416. As a result, an investor could spread trade on the UK Techmark market:
Finishing above 2416, or
Finishing below 2399
On the settlement date for this 'March' market, 19-Mar-13.
When making a spread bet on the UK Techmark index you trade in £x per point. As a result, should you decide to risk £5 per point and the UK Techmark moves 25 points then that would make a difference to your profit/loss of £125. £5 per point x 25 points = £125.
For short term trading on stock market indices also see Stock Market Indices Rolling Daily Spread Betting.
So, if we take the spread of 2399 - 2416 and assume that:
- You have completed your analysis of the markets, and
- Your analysis leads you to think that the UK Techmark index will close above 2416 by 19-Mar-13
Then you could choose to go long of the market at 2416 for a stake of, for example, £2 per point.
With such a bet you make a profit of £2 for every point that the UK Techmark index rises higher than 2416. Nevertheless, you will make a loss of £2 for every point that the UK Techmark market goes below 2416.
Looked at another way, if you buy a spread bet then your P&L is calculated by taking the difference between the final price of the market and the price you bought the market at. You then multiply that difference in price by the stake.
Subsequently, if, on the expiry date, the UK Techmark index closed at 2464, then:
Profit = (Settlement Price - Opening Price) x stake
Profit = (2464 - 2416) x £2 per point stake
Profit = 48 x £2 per point stake
Profit = £96.00 profit
Speculating on the UK stock market is rarely straightforward. In this case, you had bet that the UK index would go up. Naturally, the index could fall.
If the Techmark had fallen and the UK Techmark closed lower at 2359, then you would end up making a loss on this spread bet.
Loss = (Settlement Price - Opening Price) x stake
Loss = (2359 - 2416) x £2 per point stake
Loss = -57 x £2 per point stake
Loss = -£114.00 loss
Note - UK Techmark March Futures spread betting market correct as of 10-Oct-11.
'Spread Betting on Mid-Caps and Small-Caps' edited by Jacob Wood, updated 13-Apr-17
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Spread Betting on Mid-Caps and Small-Caps
Guide to trading Mid-Caps and Small-Caps including spread betting on UK stock indices & shares. Plus getting live FTSE 250 charts and prices, commission-free trading and... » read from top.
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