South Africa 40 Spread Betting
Where Can I Spread Bet on the South Africa 40? |
You can currently spread bet on the South Africa 40 and other Indices at:
» IG Index
» CMC Markets
» GFT
The South Africa 40 index may be available with other brokers.
Where Can I Trade the South Africa 40 for Free? |
It depends upon what you mean by free. If you are looking for a free spread betting platform then don't forget that in the UK spread betting is tax free*
You can also spread bet on the South Africa 40 and other index markets commission free and with no brokers' fees with IG Index.
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How to Spread Bet on the South Africa 40? |
As with a wide range of financial markets, you are able to place a spread bet on stock market indices, such as the South Africa 40, to either increase or decrease.
Looking at a spread betting website like IGIndex, we can see that they are currently valuing the South Africa 40 December Futures market at 32261 - 32283. This means an investor can spread bet on the South Africa 40 index:
 Closing higher than 32283, or
 Closing lower than 32261
On the expiry date for this 'December' market, 20-Dec-12.
When spread trading on the South Africa 40 index you trade in £x per point. So, should you decide to risk £5 per point and the South Africa 40 moves 24 points then that would change your bottom line by £120. £5 per point x 24 points = £120.
For short term trading on a range of indices also see Indices Rolling Daily Spread Betting.
South Africa 40 Futures - Index Spread Trading Example |
Now, if we consider the above spread of 32261 - 32283 and assume that:
- You have done your market analysis, and
- Your analysis leads you to think that the South Africa 40 index will settle higher than 32283 by 20-Dec-12
Then you could decide that you want to go long of the market at 32283 for a stake of £2 per point.
So, you gain £2 for every point that the South Africa 40 index pushes above 32283. Having said that, you will lose £2 for every point that the South Africa 40 market falls below 32283.
Considering this from another angle, if you were to buy a spread bet then your profits (or losses) are worked out by taking the difference between the final price of the market and the initial price you bought the spread at. You then multiply that difference in price by the stake.
With that in mind, if, on the expiry date, the South Africa 40 market settled higher at 32348, then:
Profit = (Final Price - Initial Price) x stake
Profit = (32348 - 32283) x £2 per point stake
Profit = 65 x £2 per point stake
Profit = £130.00 profit
Trading indices, whether by spread betting or not, is not always straightforward. In this case, you wanted the South African stock market index to rise. Naturally, the index might go down.
If the South African stock market had fallen and the South Africa 40 closed lower at 32212, you would end up making a loss and losing on this spread bet.
Loss = (Final Price - Initial Price) x stake
Loss = (32212 - 32283) x £2 per point stake
Loss = -71 x £2 per point stake
Loss = -£142.00 loss
Note: South Africa 40 December Futures spread betting market taken as of 10-Oct-11.
Where Can I Find Free Live South Africa 40 Prices? |
If you want to access quick live market information then you could do worse than opening an account with a spread betting company like IG Index.
Also, you don't have to trade with them, if you just open an account (which is free to do) then their data is free. The catch? You'll get the odd email or letter from them. In the example below you can also see that their free charts are also useful.
South Africa 40 Charts Example |
As mentioned above, you can get free charts with spread betting companies like IG.
As with most candlestick charts, you can alter the charts to see market data by the minute, by the hour, by the week etc. There are also a number of other settings designed to help you analyse the markets.
Example Stock Market Charts:
Financial Spreads » "With FinancialSpreads.com you get all the advantages of
Spread Betting as well as commission free CFD Trading on 2,500+ markets, 24 hour trading, professional level charts and..." read
Financial Spreads review.
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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.
'South Africa 40 Spread Betting' by DB, updated 17-May-13
For related pages also see:
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