Pearson Spread Betting
Where Can I Spread Bet on Pearson?
At the moment, investors can spread bet without brokers' fees or commissions on Pearson, in addition to a variety of related financial markets, with:
|Broker Ratings - Sponsored by IG
A look at the latest Pearson broker ratings:
|17-Nov-15||Neutral||Exane BNP Paribas||773.5||1000||29.30%|
For the latest UK broker ratings see Daily Trading Tips.
Where Can I Find Live Spread Betting Prices and Charts for Pearson?
The real time CFDs chart and prices below offers a valuable guide to the Pearson market.
The chart above is provided by Plus500 and usually shows the Pearson futures contract.
If you want access to spread betting prices and live charts for Pearson, you might need a spread trading account.
In addition, a spreads account would give you access to the short-term daily markets. Readers should note that opening an account is subject to credit and status checks.
If your account application is approved then, once logged in, you will be able to analyse the real-time charts/prices. Usually, these will be provided as part of the service, however, the catch is that you'll probably receive the occasional sales call and/or letter from your chosen firm.
Of course, if you want to trade then, before starting, you should note that CFDs and financial spread betting do carry a high level of risk and losses can exceed your initial investment.
See below for more on advanced Pearson charts.
Technical Charting Packages for Pearson
Whilst charts tend to vary from firm to firm, they usually have user friendly features such as:
The charts on CapitalSpreads also include advanced features like:
- A large range of time periods - 2 minutes, 1 hour, 4 hours etc.
- Various display styles - candlestick and line charts
- Drawing options and tools - Fibonacci Time Zones, Fans and Arcs
- Customisable Indicators, Back Testing and Analysis tools
- Chart overlays - Parabolic SAR, Ichimoku Kinko Hyo, Price Channels etc.
- A selection of indicators - MACD, Chaikin Volatility, Volume Index etc.
- Automatic email notifications that trigger when the markets reach a specific level
The following financial spread betting brokers give their account holders live trading prices and charts:
Where Can I Spread Bet on Pearson for Free?
Trading does involve risks. Nevertheless, if you would like to open an entirely free Practice Account, that lets you try spread trading on a host of markets, then please see below for further details.
When looking at which trading option is right for you, don't forget that spread betting, in the UK, is currently free of stamp duty, income tax and capital gains tax*.
If you're interested in a low cost spread trading website, you should note that you can take a position on Pearson commission free through providers such as:
Should you want to have a look at an entirely free Practice Account which allows users to trial spread betting on markets like EUR/GBP, the FTSE 100, gold and Pearson, then you can always have a look at:
All of the above spread betting firms currently offer a Test Account that allows investors to study charts, apply a host of trading orders and test new trading ideas.
How to Spread Bet on Pearson?
Should you want to speculate on firms such as Pearson then one possibility could be spread trading on the Pearson share price.
Looking at InterTrader, you can see that they are currently showing the Pearson Rolling Daily market at 1211.3p - 1213.7p. This means an investor can spread trade on the Pearson share price:
Increasing higher than 1213.7p, or
Decreasing lower than 1211.3p
When spread trading on UK equities you trade in £x per penny. As a result, if you decide to have a stake of £4 per penny and the Pearson shares move 29p then that would alter your P&L by £116. £4 per penny x 29p = £116.
Rolling Daily Shares Markets
Be aware that this is a Rolling Daily Market and so there is no settlement date for this market. If you leave your trade open at the end of the day, it simply rolls over to the next trading day.
If you do let your position roll over into the next day and are spread betting on the market to:
Rise - then you will be charged a small overnight financing fee, or
Fall - then a small payment is often credited to your account
For a more detailed guide to Rolling Daily Markets, including a fully worked example, please read our feature Rolling Daily Spread Betting.
Pearson Rolling Daily - Equities Trading Example
So, if we consider the spread of 1211.3p - 1213.7p and make the assumptions:
Then you may decide to buy a spread bet at 1213.7p and risk £5 per penny.
- You've done your company analysis, and
- You feel that the Pearson shares will go higher than 1213.7p
So, you win £5 for every penny that the Pearson shares push above 1213.7p. However, it also means that you will lose £5 for every penny that the Pearson market moves below 1213.7p.
Looking at this from another angle, should you buy a spread bet then your profits (or losses) are found by taking the difference between the closing price of the market and the price you bought the spread at. You then multiply that difference in price by your stake.
As a result, if after a few days the stock moved higher then you might want to close your spread bet so that you can lock in your profit.
So if the market moved up then the spread might move to 1247.7p - 1250.1p. To settle/close your trade you would sell at 1247.7p. As a result, with the same £5 stake this trade would make you a profit of:
Profit / loss = (Closing Price - Initial Price) x stake
Profit / loss = (1247.7p - 1213.7p) x £5 per penny stake
Profit / loss = 34.0p x £5 per penny stake
Profit / loss = £170.00 profit
Financial spread trading on shares doesn't always go to plan. In this example, you wanted the share price to rise. Nevertheless, it could fall.
If the Pearson share price decreased, contrary to your expectations, then you could close your position in order to limit your losses.
If the spread fell to 1182.8p - 1185.2p you would settle your position by selling at 1182.8p. As a result, your loss would be:
Profit / loss = (Closing Price - Initial Price) x stake
Profit / loss = (1182.8p - 1213.7p) x £5 per penny stake
Profit / loss = -30.9p x £5 per penny stake
Profit / loss = -£154.50 loss
Note - Pearson Rolling Daily equities market quoted as of 19-Oct-12.
Pearson Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on Pearson with
'Pearson Spread Betting' edited by Jenna Cutly, updated 03-Oct-17
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