Spreads UK
There are a number of UK facing spread trading companies, each of the firms offers trading accounts in GBP. So whether you are looking to trade UK Shares, US Oil, German Shares or the Hong Kong Hang Seng you can trade them all from your GBP denominated account.
Spreads UK The Companies |
| Online Application |
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| Credit Account |
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| Deposit Account |
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| Stop Loss Available |
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| Automatic Stop Loss |
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| 24 Hour Trading |
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| FSA Authorised and Regulated |
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| Candlestick Charts |
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Comparison Notes.
Spreads UK UK and Global Index Markets |
| FTSE 100 (UK 100) Daily - Spread Size |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
| FTSE 100 (UK 100) Daily - Min Stake |
£1 |
£0.50 |
£2 |
£1 |
£1 |
£1 |
£1 |
£1 |
| FTSE 100 (UK 100) Future - Spread Size |
4 |
4-8 |
6 |
4 |
3 |
4 |
4 |
4 |
| FTSE 100 (UK 100) Future - Min Stake |
£1 |
£0.50 |
£2 |
£1 |
£1 |
£1 |
£1 |
£1 |
| Dow Jones (Wall St) Daily - Spread Size |
1 |
1 |
2 |
1 |
2-4 |
1 |
1 |
2 |
| Dow Jones (Wall St) Daily - Min Stake |
£1 |
£0.50 |
£1 |
£1 |
£1 |
£1 |
£1 |
£1 |
| DAX 30 Daily - Spread Size |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
1 |
| DAX 30 Daily - Min Stake |
£1 |
£0.50 |
£2 |
£1 |
£1 |
£1 |
£1 |
£1 |
| S&P 500 Daily - Spread Size |
3 |
4 |
5 |
3 |
5 |
3 |
3 |
8 |
| S&P 500 Daily - Min Stake |
£1 |
£0.50 |
£1 |
£1 |
£1 |
£1 |
£1 |
£1^ |
| NASDAQ 100 Future - Spread Size |
3 |
4-10 |
4 |
3 |
4 |
3 |
3 |
4 |
| NASDAQ 100 Future - Min Stake |
£1 |
£0.50 |
£4 |
£1 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes.
UK Spreads 24 Hour Spreads |
The London Stock Exchange may close at 4.30pm local time, however, you can now trade a number of UK based markets like the FTSE 100 and a variety of currency markets, like EUR/GBP, GBP/USD and GBP/JPY, throughout the night. For more details see 24 Hour Spreads.
Spreads UK Trading UK Shares |
If you are looking to trade UK shares we now have over 200 share based spread trading examples covering the top UK listed companies.
Spreads UK FTSE 100 Company Example
If an investor wants to speculate on firms like Barclays then one possibility is to spread bet on the Barclays share price.
Looking at a financial spread betting site like InterTrader, you can see that they have priced the Barclays Rolling Daily market at 235.1p - 235.5p. Therefore, you can spread bet on the Barclays share price:
 Increasing higher than 235.5p, or
 Decreasing lower than 235.1p
Whilst financial spread trading on UK equities you trade in £x per penny. Therefore, if you decide to have a stake of £2 per penny and the Barclays shares move 36p then that would alter your P&L by £72. £2 per penny x 36p = £72.
Rolling Daily Equities Markets
One important thing to note is that this is a Rolling Daily Market and so unlike a normal spread betting futures market, there is no settlement date. You do not have to close your position, should it still be open at the end of the trading day, it will roll over to the next session.
If you do let your trade roll over into the next day and are spread betting on the market to:
Go higher - then you'll be charged a small overnight financing fee, or
Go lower - then you'll normally receive a small credit to your account
Our article Rolling Daily Spread Betting goes into more detail about Rolling Daily Markets and includes a fully worked example.
So, if you continue with the spread of 235.1p - 235.5p and make the assumptions:
- You have done your stock market research, and
- Your analysis suggests the Barclays shares will push higher than 235.5p
Then you may decide that you want to buy at 235.5p and risk, lets say, £15 per penny.
This means that you win £15 for every penny that the Barclays shares increase and go above 235.5p. Nevertheless, it also means that you will make a loss of £15 for every penny that the Barclays market moves below 235.5p.
Looked at another way, should you Buy a spread bet then your P&L is worked out by taking the difference between the closing price of the market and the price you bought the market at. You then multiply that difference in price by your stake.
With this in mind, if after a few days the stock moved higher then you might want to close your trade so that you can secure your profit.
If that happened then the spread, set by the spread betting company, might move up to 243.7p - 244.1p. In order to close your position you would sell at 243.7p. So, with the same £15 stake your profit would be calculated as:
Your P&L = (Closing Price - Opening Price) x stake
Your P&L = (243.7p - 235.5p) x £15 per penny stake
Your P&L = 8.2p x £15 per penny stake
Your P&L = £123.00 profit
Trading shares, by spread trading or otherwise, may not go to plan. In the above example, you had bet that the share price would increase. Of course, it could go down.
If the Barclays share price had started to drop then you might decide to settle/close your position to stop any further losses.
Should the spread pull back to 228.4p - 228.8p then this means you would close your spread bet by selling at 228.4p. Accordingly, your loss would be:
Your P&L = (Closing Price - Opening Price) x stake
Your P&L = (228.4p - 235.5p) x £15 per penny stake
Your P&L = -7.1p x £15 per penny stake
Your P&L = -£106.50 loss
Note - Barclays Rolling Daily equities market correct as of 25-Oct-12.
Spreads UK Where to Trade UK Shares? |
Each of the firms in the tables above offers spread trading on FTSE 100 companies.
IG Index will also offer markets on FTSE 250 companies. Financial Spreads also offers FTSE 250 companies as well as a selection of UK Small Cap and AIM listed companies.
Spreads UK UK and Global Currency Markets |
| EUR / USD Daily - Spread Size |
1 |
1 |
1 |
2 |
0.8 |
1 |
1 |
1 |
| EUR / USD Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| GBP / USD Daily - Spread Size |
2 |
2 |
2 |
3 |
0.8 |
2 |
2 |
2 |
| GBP / USD Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| EUR / GBP Daily - Spread Size |
1 |
2 |
2 |
1 |
1 |
1 |
1 |
2 |
| EUR / GBP Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
| USD / JPY Daily - Spread Size |
0.8 |
2 |
1 |
2 |
0.8 |
0.8 |
0.8 |
2 |
| USD / JPY Daily - Min Stake |
£1 |
£0.50 |
£0.50 |
£0.5 |
£1 |
£1 |
£1 |
£1 |
Comparison Notes.
As the above shows, naturally you can trade GBP/USD and EUR/GBP. However, other Sterling markets include: GBP/CAD, GBP/CHF, GBP/JPY, GBP/ZAR, GBP/EUR and GBP/JPY.
Risk Warning: CFD trading and spread trading carry a high level of risk to your capital and you may lose more than your initial investment. CFD trading and spread 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.
'Spreads UK' by DB, updated 15-May-13
For related pages also see:
Spread Trading, updated 15-May-13
Spread Trading guide with live prices, live charts & a price comparison of the main spread trading markets. The spread trading guide also covers where to trade, spread trading tips and...read article: Spread Trading.
Spreads UK, updated 15-May-13
A review of the UK spread betting markets; a comparison of the UK spreads companies, 24 hour trading, how to spread bet on UK shares and...read article: Spreads UK.
Financial Spread Trading, updated 15-May-13
Financial Spread Trading - A look at where you can open a financial spread trading account, where to get live financial spread trading charts, risk management tips, spread trading examples and...read article: Financial Spread Trading.
WorldSpreads Guide to Economic Indicators, updated 20-May-13
With the vast majority of popular financial markets traded globally it is important to appreciate the economic indicators and how they can affect your positions. In order to help WorldSpreads have put together this guide to...read article: WorldSpreads Guide to Economic Indicators.
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