How to Spread Bet on Equities - Schroders Shares?
At the time of publication, the Schroders (December) market is 991.2p - 995.2p with Paddypowertrader. This market expires on 15-Dec-09.
Like many markets, you can financial spread bet on the future price of shares, like Schroders shares, rising or falling.
This means you can spread trade on Schroders shares settling:
- Above 995.2p, or
- Below 991.2p
On the expiry date for this market, 15-Dec-09.
When financial spread betting on UK shares you trade in £x per penny, where a penny, in this case, is 1p of Schroders share price movement.
For example, if your stake was £4 per penny and the Schroders shares move 15p then that would be a £60 difference to your profits.
Financial Spread Trading Example - Schroders
For example, let's consider the spread of 991.2p - 995.2p and assume that you have done your research and think that the Schroders shares will rise close above 995.2p on 15-Dec-09.
As a result, you buy at 995.2p for a stake of, let's say, £2 per penny.
If you 'Buy' an online spread trade, your profit/loss is worked out by taking the difference between the settlement level of the market and the value you bought the market at and then multiplying that difference by the stake per penny of share price movement.
Now, if the market settles at 1050p by the expiry time/date, then:
Profit/Loss = (Closing Price - Opening Price) x stake.
Profit/Loss = (1050.0p - 995.2p) x £2 per penny stake.
Profit/Loss = 54.8p x £2 per penny stake.
Profit/Loss = £109.60 profit.
Financial spread betting on shares is not straightforward. If the market didn't move as predicted, and had the Schroders stock fallen and closed lower at 940p, then you would have lost on this market.
Profit/Loss = (Closing Price - Opening Price) x stake.
Profit/Loss = (940.0p - 995.2p) x £2 per penny stake.
Profit/Loss = -55.2p x £2 per penny stake.
Profit/Loss = -£110.40 loss.
Note that is a Schroders market rather than a Schroders N/V market. Spread betting market prices quoted as of 13-Aug-09).
If you want to access live spread betting markets then you generally need to open an account with a spread betting company. Note that accounts are subject to status.
The spread betting companies listed on this site do not charge a fee to apply for an account.
If your application is approved then you can log on to their website and access their Live Prices and charts. There is no charge for looking at their prices.
The catch? You'll get the odd email or letter from them. The companies below also offer clients access to candlestick charts.
Of course, if you do trade then you should note that spread betting carries a high level of risk to your capital and you could lose more than your initial investment.
Live prices are available for account holders at:
For related articles also see:
About this page:
|
|
Q) Average Trading Results?
A) Get free trading tips, offers, price updates, important news and more!
|
|
