FTSE 250 Spread Betting
Where Can I Spread Bet on the FTSE 250? |
You can financial spread bet on the FTSE 250 via:
Advert:
FTSE 250 Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on the FTSE 250 with
Financial Spreads.
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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 Rolling Daily - Index Spread Trading Example |
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 market 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 11-Sep-12.
Where Can I Find Live Spread Betting 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:
FTSE 250 Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on the FTSE 250 with
Financial Spreads.
|
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading 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.
'FTSE 250 Spread Betting' by DB, updated 21-May-13
For related pages also see:
Indices Spread Betting, updated 24-May-13
Stock market index spread betting guide with live indices prices and charts. Plus a daily stock market review, indices spread betting comparison, where to trade indices commission-free and tax-free* as well as...read article: Indices Spread Betting.
Stock Market Trading, updated 23-May-13
A look at popular stock market trading accounts, commission free trading, stock market charts, a price comparison, how to buy/sell a stock market index, market analysis and...read article: Stock Market Trading.
Stock Market Index Spread Betting Guides, updated 23-May-13
Over 35 individual Stock Market Index spread betting guides for the FTSE 100, Dow Jones, DAX, NASDAQ, Nikkei etc. Each guide looks at live charts and prices, where you can trade the Index commission-free, a fully worked example and...read article: Stock Market Index Spread Betting Guides.
FTSE 100 Spread Betting, updated 24-May-13
FTSE 100 spread betting guide with live FTSE 100 index prices and charts. Plus a FTSE 100 spread betting price comparison, where to spread bet on the FTSE 100 commission-free and tax-free* as well as...read article: FTSE 100 Spread Betting.
Dow Jones Spread Betting, updated 24-May-13
Dow Jones spread betting guide with live Dow Jones index prices and charts. Plus a Dow Jones spread betting price comparison, where to spread bet on the Dow Jones commission-free and tax-free* as well as...read article: Dow Jones Spread Betting.
DAX 30 Spread Betting, updated 24-May-13
DAX 30 spread betting guide with live DAX 30 index prices and charts. Plus a DAX 30 spread betting price comparison, where to spread bet on the DAX 30 commission-free and tax-free* as well as...read article: DAX 30 Spread Betting.
S&P 500 Spread Betting, updated 24-May-13
S&P 500 spread betting guide with live S&P 500 index prices and charts. Plus a S&P 500 spread betting price comparison, where to spread bet on the S&P 500 commission-free and tax-free* as well as...read article: S&P 500 Spread Betting.
NASDAQ 100 Spread Betting, updated 24-May-13
NASDAQ 100 spread betting guide with live NASDAQ 100 index prices and charts. Plus a NASDAQ 100 spread betting price comparison, where to spread bet on the NASDAQ 100 commission-free and tax-free* as well as...read article: NASDAQ 100 Spread Betting.
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