Carbon Emissions Spread Betting and Futures Trading Guide
Clean Financial - The Financial Spread Betting Website
Carbon Emissions Spread Betting Guide

Carbon Emissions Spread Betting

Where Can I Spread Bet on Carbon Emissions?

You are currently able to take a view on Carbon Emissions by trading with any of the following spread betting firms:

Advert: Carbon Emissions Spread Betting, sponsored by
You can spread bet on Carbon Emissions with Financial Spreads.

Where Can I Spread Bet on Carbon Emissions for Free?

By its very nature, speculating always includes a degree of risk. Having said that, some investors prefer to use a free Test Account before they trade with real money, see below for more details.

When looking at which investment option might work for you, also remember that in the UK, financial spread betting is free of stamp duty, capital gains tax and income tax*.

If you are looking for a free spread betting website then you should keep in mind that investors are able to trade Carbon Emissions with no brokers' fees, and zero commissions, with companies such as:

Free Demo Account

If you're interested in a completely free Practice Account / Demo Account that lets you get a better feel for spread betting, and trading markets such as Carbon Emissions, then look at: The above spread trading companies offer a risk free Practice Account which lets investors try out new ideas, check professional level charts and apply an array of orders, like stop losses and guaranteed stop losses.
How to Spread Bet on Carbon Emissions

How to Spread Bet on Carbon Emissions?

As with most key financial markets, investors can place a spread bet on commodities futures, such as Carbon Emissions, to rise or fall.

Looking at a financial spread betting platform like FinancialSpreads, you can see that they are pricing the Carbon Emissions December Futures market at €104.95 - €105.00. This means that an investor could put a spread bet on Carbon Emissions:

  Carbon Emissions Spread Trading Example Closing above €105.00, or
  Carbon Emissions Spread Betting Example Closing below €104.95

On the closing date for this 'December' market, 14-Dec-12.

When spread trading on Carbon Emissions you trade in £x per cent. So, if you choose to have a stake of £4 per cent and Carbon Emissions moves €0.26 then that would change your profits (or losses) by £104. £4 per cent x €0.26 = £104.

Carbon Emissions Futures - Commodity Spread Betting Example

So, if we think about the above spread of €104.95 - €105.00 and assume that:
  • You have done your analysis of the market, and
  • You think that the Carbon Emissions market will finish higher than €105.00 by 14-Dec-12
Then you could decide to buy a spread bet at €105.00 for a stake of £3 per cent.

With such a spread bet you win £3 for every cent that Carbon Emissions pushes above €105.00. However, such a bet also means that you will make a loss of £3 for every cent that the Carbon Emissions market moves lower than €105.00.

Looking at this from another angle, if you ‘Buy’ a spread bet then your P&L is calculated 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.

Therefore, if, on the expiry date, Carbon Emissions closed at €105.53, then:

P&L = (Settlement Price - Opening Price) x stake
P&L = (€105.53 - €105.00) x £3 per cent
P&L = €0.53 x £3 per cent
P&L = £159 profit

Spread betting on commodity markets is not easy. In this example, you had bet that the futures market would go up. Nevertheless, the futures market could fall.

If Carbon Emissions fell, settling at €104.53, you would end up making a loss on this trade.

P&L = (Settlement Price - Opening Price) x stake
P&L = (€104.53 - €105.00) x £3 per cent
P&L = -€0.47 x £3 per cent
P&L = -£141 loss

Note - Carbon Emissions December Futures spread betting market taken as of 26-Apr-12.

Where Can I Find Live Prices and Charts for Carbon Emissions?

If you want to make use of live charts and prices for Carbon Emissions, an option is to use a spread trading account. Readers should note that all spreads accounts are subject to status, suitability and credit checks.

Should your new account be approved then you will be able to log in and check the prices and charts. Usually, this will be provided for free. The catch? You'll probably receive an occasional letter, call and/or email from your spread trading firm.

Of course, if you do spread bet then, before you start, you should note that spread trading does carry a high level of risk and you could lose more than your initial investment.

Although charts tend to differ across the various firms, in order to assist you with your trading analysis, they usually come with user friendly tools such as:
  • A number of different intervals such as 30 minutes, 4 hours, 1 month and so on
  • A variety of chart views such as candlestick charts and bar charts
  • Drawing features such as Trendlines and Fibonacci Retracements
  • Indicators and chart overlays such as Exponential Moving Average, Relative Strength Index (RSI), TSI and so on
The charts provided by also include more advanced aspects like:
  • BackTesting functions
  • Automatic alerts for when the markets reach a specific level

Sample Financial Spreads commodity market trading chart

Carbon Emissions Trading Guide - Example Chart

The financial spread betting brokers listed below provide account holders with live charts and prices:

Advert: Carbon Emissions Spread Betting, sponsored by
You can spread bet on Carbon Emissions with Financial Spreads.

Trading Risk Warning
'Carbon Emissions Spread Betting' edited by Jacob Wood, updated 22-Feb-17

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