Spread betting markets on US Shares may also be available through other companies. Notes.
2) Spread Betting on US Stocks and Shares
At Online-Spread-Betting.com we have created hundreds of individual shares spread betting guides to help talk you through the complexities of financial spreads betting.
Each spread betting guide covers key equities trading questions such as:
Where can I spread bet on a given share?
Where can I find live prices for a particular share?
Where can I find charts for a given share?
How do you spread bet on a given share to go up / down?
If you are looking to spread bet on a particular share, simply click on the link below for the spread betting guide to that share.
Should you decide to spread bet on US shares such as IBM then, looking at a spread betting website, you would currently see a spread betting price of $164.53 - $164.73.
Therefore, you can bet on IBM shares to move higher than $164.73 or to move lower than $164.53.
If you are spread betting, you bet on every unit the market moves up or down. In the case of the IBM market a unit is $0.01 of the share's price movement.
In this case, you might choose to trade £1 for every cent that the IBM share price moves up or down.
Spread Betting on the US Shares to Go Up
If you were to go long of IBM at $164.73 and the shares rose then the spread could move to $166.05 - $166.25. In that case, you might want to close your trade for a profit by selling at $166.05.
P&L = (settlement value of the market - opening value of the market) x stake per cent
P&L = ($166.05 - $164.73) x £1 per cent stake
P&L = $1.32 x £1 per cent
P&L = £132 profit
Financial markets also move down, if the market had moved down to, for example, $163.25 - $163.45, you could choose to close your bet to restrict your losses. Therefore, you would sell the market at $163.25.
You would close your bet with the same £1 per cent stake:
P&L = (settlement value of the market - opening value of the market) x stake per cent
P&L = ($163.25 - $164.73) x £1 per cent stake
P&L = -$1.48 x £1 per cent
P&L = -£148 loss
Spread Betting on the US Shares to Go Down
A benefit of spread trading is that investors can go short of the US shares spread betting markets.
If you recall, initially the market was priced at $164.53 - $164.73.
If you were to sell IBM at $164.53 and the shares fell then the spread might change to $163.21 - $163.41. If that happened, you might decide to close your spread bet for a profit at $163.41.
P&L = (opening value of the market - settlement value of the market) x stake per cent
P&L = ($164.53 - $163.41) x £1 per cent stake
P&L = $1.12 x £1 per cent
P&L = £112 profit
The markets can of course rise, if the market had moved up to, for example, $165.59 - $165.79, you may want to close your trade to prevent further losses. Assuming this was the case, you would buy at $165.79.
So, with the same £1 per cent stake:
P&L = (opening value of the market - settlement value of the market) x stake per cent
P&L = ($164.53 - $165.79) x £1 per cent stake
P&L = -$1.26 x £1 per cent
P&L = -£126 loss
IBM Rolling Daily spread betting prices correct as of 07-Feb-11.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'American Stocks Spread Betting', Guide by D. Jones, last update: 16-May-12
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Risk Warning:
Spread Betting carries a high level of risk
to your capital and you can lose more than your initial investment,
it may not be suitable for all investors. Ensure you only
speculate with money that you can afford to lose and that you fully
understand the risks involved and seek independent financial advice where necessary.
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