Spread Betting on Wheat
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Welcome to Clean Financial's guide to Wheat spread betting.
Quick and simple answers to common Wheat questions:
Q) Where can I Spread Bet on Wheat?
Q) Where can I Trade for Free on Wheat?
Q) How to Spread Bet on Wheat?
Q) Where can I find Free Live Prices on Wheat?
Q) Where can I find Free Wheat Charts?
Advert:
Spread Betting on Wheat, sponsored by
FinancialSpreads.com.
You can spread bet on Wheat with
Financial Spreads.
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Where can I Spread Bet on Wheat?
You can spread bet on Wheat and a range of other commodities at:
Where can I Trade for Free on Wheat?
It depends upon what you mean by free. If you're looking for a free Demo Account where you can practice spread trading see below.
Tax 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 Wheat and other commodities commission free and with no brokers fees at:
Free Demo Account
If you're looking for a free Demo Account / Test Account where you can trial spread betting, including commodities such as like Wheat, then you can you can always try:
Each of the above currently offers a free demo account.
How to Spread Bet on Wheat
As with a wide range of commodities markets, you are able to place a spread bet on futures markets, like Wheat, to either rise or fall.
Looking at the Capital Spreads website, they are pricing the Wheat July Futures market at $626.7 - $628.0. As a result, you can spread trade on Wheat:
- Settling above $628.0, or
- Settling below $626.7
On the expiry date for this 'July' market, 20-Jun-12.
When financial spread betting on Wheat you trade in £x per $1. Therefore, if you risked £10 per $1 and Wheat moves $5 then there would be a difference to your bottom line of £50. £10 per $1 x $5 = £50.
Wheat Spread Betting Example
So, if you consider the above spread of $626.7 - $628.0 and assume that:
- you have done your market research, and
- your research leads you to think that the Wheat market will settle higher than $628.0 by 20-Jun-12
then you could decide to buy a spread bet at $628.0 and invest, for example, £5 per $1.
So, you make a profit of £5 for every $1 that Wheat rises above $628.0. Of course, this trade also means that you will lose £5 for every $1 that the Wheat market moves below $628.0.
Put another way, if you were to ‘Buy’ a spread bet then your profit/loss is found 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.
So if, on the expiry date, Wheat settled at $653.1, then:
Profits (or losses) = (Closing Value - Opening Value) x stake
Profits (or losses) = ($653.1 - $628.0) x £5 per $1
Profits (or losses) = $25.1 x £5 per $1
Profits (or losses) = £125.50 profit
Trading commodity markets may not go to plan. In this case, you wanted the futures market to go up. However, the commodity might go down.
If Wheat had fallen, closing at $606.0, then this means you would end up making a loss on this trade.
Profits (or losses) = (Closing Value - Opening Value) x stake
Profits (or losses) = ($606.0 - $628.0) x £5 per $1
Profits (or losses) = -$22.0 x £5 per $1
Profits (or losses) = -£110.00 loss
Note: Wheat July Futures spread betting price accurate as of 26-Apr-12.
Where can I Find Free Live Prices on Wheat?
If you want to access quick live market information then you could do worse than opening an account with a firm like Financial Spreads.
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.
There are also live prices available at:
Where can I Find Free Wheat Charts?
As mentioned already, investors can get free commodities charts with financial spread betting companies like Financial Spreads.
Investors can change the charts in order to review the data across different timescales, such as 1 minute, 1 hour, 1 week, 1 month etc. There are also many other settings and chart overlays to help with your analysis of the markets.
As you can see from the commodities charts below, financial markets do not always move in a smooth line. You can also expect the prices to occasionally "gap" if the market becomes more volatile.
FinancialSpreads also provide investors with a free Demo account (see above). This allows you to practice spread betting or try out new trading theories without any risk.
Advert:
Spread Betting on Wheat, sponsored by
FinancialSpreads.com.
You can spread bet on Wheat with
Financial Spreads.
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Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It 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.
'Spread Betting on Wheat' by DB, updated 04-May-12
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