UK 250 Spread Betting
Where Can I Spread Bet on the UK 250? |
Investors can financial spread bet on the UK 250 through firms like:
Advert:
UK 250 Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on the UK 250 with
Financial Spreads.
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Where Can I Spread Bet on the UK 250 for Free? |
Investing, by its very nature, involves a degree of risk, but if you would like to open a (free) Practice Account, that allows you to access professional level charts and try out financial spread betting, please see below.
When thinking about which trading option might work for you, don't forget that in the UK, spread betting is exempt from stamp duty, capital gains tax and income tax*.
If you're trying to find a free financial spread betting platform then keep in mind that you can take a view on the UK 250 without having to pay any brokers' fees or commissions with firms such as:
If you want to have a look at a completely free Test Account that lets users get to grips with financial spread betting, including trading markets such as the UK 250, then you can always look at:
The above companies currently offer a Demo Account which lets users test new strategies, gain experience with a range of orders and study charts, such as line and candlestick charts.
How to Spread Bet on the UK 250? |
As with many markets, you can spread bet on indices, such as the UK 250, to either rise or fall.
Logging onto FinancialSpreads, you can see that they are pricing the UK 250 Rolling Daily market at 11757 - 11787. This means an investor can spread trade on the UK 250 index:
 Rising above 11787, or
 Falling below 11757
Whilst making a spread bet on the UK 250 index you trade in £x per point. As a result, if you staked £2 per point and the UK 250 moves 24 points then that would be a difference to your profit/loss of £48. £2 per point x 24 points = £48.
Rolling Daily Indices Markets
One thing to note is that this is a Rolling Daily Market which means that unlike a normal futures market, there is no closing date. You do not have to close your position, should it still be open at the end of the trading day, it will stay open and roll over into the next day.
If your bet is rolled over and you are speculating that the market will:
Go up - then you'll usually be charged a small overnight financing fee, or
Go down - then a small payment is normally credited to your account
For more information see Rolling Daily Spread Betting.
UK 250 Rolling Daily - Index Spread Trading Example |
Now, if we think about the spread of 11757 - 11787 and assume that:
- You have done your research, and
- You think that the UK 250 index will move above 11787
Then you could decide that you are going to go long of the market at 11787 and invest, for example, £3 per point.
This means that you win £3 for every point that the UK 250 index increases higher than 11787. However, you will lose £3 for every point that the UK 250 market goes below 11787.
Put another way, should you buy a spread bet then your profits (or losses) are calculated by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that difference in price by the stake.
Therefore, if after a few trading sessions the UK stock market started to rise you might decide to close your trade in order to guarantee your profit.
As an example, if the market increased then the spread might move to 11834 - 11864. You would close your spread bet by selling at 11834. As a result, with the same £3 stake this trade would result in a profit of:
Profit / loss = (Closing Price - Opening Price) x stake
Profit / loss = (11834 - 11787) x £3 per point stake
Profit / loss = 47 x £3 per point stake
Profit / loss = £141 profit
Speculating on indices, by spread trading or otherwise, is not easy. In this example, you had bet that the UK index would increase. Naturally, the index could decrease.
If the UK 250 market began to drop then you could choose to close your spread bet to stop any further losses.
If the spread dropped to 11734 - 11764 then you would settle your trade by selling at 11734. Accordingly, your loss would be:
Profit / loss = (Closing Price - Opening Price) x stake
Profit / loss = (11734 - 11787) x £3 per point stake
Profit / loss = -53 x £3 per point stake
Profit / loss = -£159 loss
Note - UK 250 Rolling Daily spread correct as of 26-Sep-12.
Where Can I Find Live Spread Betting Prices and Charts for the UK 250? |
If you'd like to look at up-to-the-minute charts/prices for the UK 250, you generally need a financial spread betting account. Please note that all such accounts are subject to credit, status and suitability checks.
If your new account is approved then you can log on to study the real-time trading charts/prices. Usually, these are free. What's the catch? You are likely to receive the odd sales email or letter from the online spread betting provider.
Of course, if you do spread bet then, before you start, you should note that spread trading does involve a high level of risk to your funds and it's possible to lose more than your initial deposit.
Even though charts normally vary between firms, in order to assist you with your analysis, they generally come with valuable tools such as:
- A number of intervals such as 2 minutes, 30 minutes, 2 hours and so on
- Different displays such as candle charts and line charts
- Drawing options and features such as Trendlines, Fibonacci Arcs, Fans and Time Zones
- Overlays and technical indicators such as MACD, Relative Strength Index and so on
Charts from Tradefair also come with more advanced features like:
- Back Testing and Optimisation functions
- Custom alerts for when your chosen market hits a specific price
Example index chart
The spread trading firms listed below give their account holders access to real-time trading prices and charts:
Advert:
UK 250 Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on the UK 250 with
Financial Spreads.
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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.
'UK 250 Spread Betting' by DB, updated 07-May-13
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