Where to Spread Bet on Homeserve

You can trade on spread betting markets such as Homeserve with spread betting companies like:

• Capital Spreads
• Spreadex
• CMCMarkets

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Homeserve

If you are going to spread trade on UK shares such as Homeserve then, on visiting a spread betting website like Financial Spreads on Friday, you may have seen a spread of 252.3p – 253.4p.

That means you could spread trade on Homeserve to increase higher than 253.4p or to decrease lower than 252.3p.

With spread betting, investors trade on every unit the market increases or decreases. In the case of the Homeserve market a unit is 1p of the share’s price movement.

As an example, you could choose to trade £15 for every penny Homeserve rises or falls.

Buying – Spread Betting on the Market to Move Up

If you were to buy Homeserve at 253.4p and the shares rose then the spread could become 259.7p – 260.8p. If that happened, you might decide to close your spread trade at 259.7p.

Your Profits (or Losses) = (final level of the market – initial level of the market) x stake per penny
Your Profits (or Losses) = (259.7p – 253.4p) x £15 per penny stake
Your Profits (or Losses) = 6.3p x £15 per penny
Your Profits (or Losses) = £94.50 profit

The markets can of course fall, if the market decreased to, as an example, 246.2p – 247.3p, you might decide to close your spread bet to restrict your losses. Therefore, you would sell at 246.2p.

You would close your bet with the same £15 per penny stake:

Your Profits (or Losses) = (final level of the market – initial level of the market) x stake per penny
Your Profits (or Losses) = (246.2p – 253.4p) x £15 per penny stake
Your Profits (or Losses) = -7.2p x £15 per penny
Your Profits (or Losses) = -£108.00 loss

Selling – Spread Betting on the Market to Move Down

One major benefit of spread betting is that investors can go short of the markets.

At the beginning of this example, the market was priced at 252.3p – 253.4p.

If you were to sell Homeserve at 252.3p and the shares went down then the spread could change to 243.6p – 244.7p. In that case, you might decide to take your profits by closing your trade at 244.7p.

Your Profits (or Losses) = (initial level of the market – final level of the market) x stake per penny
Your Profits (or Losses) = (252.3p – 244.7p) x £15 per penny stake
Your Profits (or Losses) = 7.6p x £15 per penny
Your Profits (or Losses) = £114.00 profit

The markets can of course rise, if the market increased to, for example, 259.8p – 260.9p, you might decide to close your trade to restrict your losses. If that were to happen, you would buy back at 260.9p.

You would do this with the same £15 per penny stake:

Your Profits (or Losses) = (initial level of the market – final level of the market) x stake per penny
Your Profits (or Losses) = (252.3p – 260.9p) x £15 per penny stake
Your Profits (or Losses) = -8.6p x £15 per penny
Your Profits (or Losses) = -£129.00 loss

Homeserve Rolling Daily prices quoted as of 10-Feb-12.

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.

Where to Spread Bet on Ocado

You can trade on spread betting markets such as Ocado with spread betting companies like:

• Capital Spreads
• GFT
• City Index

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Ocado

Should you decide to spread trade on UK shares like Ocado then, looking at a spread betting site like Capital Spreads on Friday, you may have seen a spread of 107.1p – 107.8p.

This means you could bet on Ocado to go above 107.8p or below 107.1p.

If you are spread trading, you trade on every unit the market increases or decreases. In the case of the Ocado market a unit is 1p of the share’s price movement.

Accordingly, you could choose to bet £15 for every penny Ocado moves up or down.

Spread Betting on the Market to Increase

If you were to buy Ocado at 107.8p and the shares went up then the spread betting market could change to 112.8p – 113.5p. If that were to happen, you could close your spread bet for a profit by selling at 112.8p.

Profit/Loss = (settlement value of the market – opening value of the market) x stake per penny
Profit/Loss = (112.8p – 107.8p) x £15 per penny stake
Profit/Loss = 5.0p x £15 per penny
Profit/Loss = £75.00 profit

Financial markets also move down, if the market dropped to, as an example, 101.9p – 102.6p, you might decide to close your bet to limit your losses. If this were the case, you would sell the market at 101.9p.

So, with the same £15 per penny stake:

Profit/Loss = (settlement value of the market – opening value of the market) x stake per penny
Profit/Loss = (101.9p – 107.8p) x £15 per penny stake
Profit/Loss = -5.9p x £15 per penny
Profit/Loss = -£88.50 loss

Spread Betting on the Market to Decrease

One of the many advantages of spread trading is that you can sell the markets.

If you recall, initially the market was priced at 107.1p – 107.8p.

If you were to go short of Ocado at 107.1p and the shares went down then the spread might change to 100.7p – 101.4p. Therefore, you could close your spread bet at 101.4p.

Profit/Loss = (opening value of the market – settlement value of the market) x stake per penny
Profit/Loss = (107.1p – 101.4p) x £15 per penny stake
Profit/Loss = 5.7p x £15 per penny
Profit/Loss = £85.50 profit

However, if the market had increased to 113.2p – 113.9p, you may decide to close your bet to restrict your losses. Assuming this was the case, you would buy at 113.9p.

Therefore, with the same £15 per penny stake:

Profit/Loss = (opening value of the market – settlement value of the market) x stake per penny
Profit/Loss = (107.1p – 113.9p) x £15 per penny stake
Profit/Loss = -6.8p x £15 per penny
Profit/Loss = -£102.00 loss

Ocado Rolling Daily spread betting market quoted as of 03-Feb-12.

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.

Where to Spread Bet on Ophir Energy

You can trade on spread betting markets such as Ophir Energy with spread betting companies like:

• IGIndex
• GFT
• CityIndex

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Ophir Energy

Should you decide to spread trade on UK shares like Ophir Energy then, looking at a spread betting site like Financial Spreads on Friday, you may have seen a spread of 312.7p – 314.2p.

Therefore, you could spread trade on Ophir Energy to go higher than 314.2p or to go lower than 312.7p.

If you are spread trading, you bet on every unit the market moves up or down; in the case of the Ophir Energy market a unit is 1p of the share’s price movement.

For example, you might decide to trade £10 for every penny Ophir Energy increases or decreases.

Buying – Spread Betting on the Market to Go Up

If you were to go long of Ophir Energy at 314.2p and the shares increased then the shares spread betting market might be re-priced at 326.8p – 328.3p. If that were to happen, you might want to close your spread bet for a profit by selling at 326.8p.

P&L = (closing price of the market – initial price of the market) x stake per penny
P&L = (326.8p – 314.2p) x £10 per penny stake
P&L = 12.6p x £10 per penny
P&L = £126.00 profit

On the other hand, if the market had moved down to 303.2p – 304.7p, you might decide to close your trade to restrict your losses. If that happened, you would sell at 303.2p.

You would close your bet with the same £10 per penny stake:

P&L = (closing price of the market – initial price of the market) x stake per penny
P&L = (303.2p – 314.2p) x £10 per penny stake
P&L = -11.0p x £10 per penny
P&L = -£110.00 loss

Selling – Spread Betting on the Market to Go Down

A benefit of placing a spread bet is that investors can short the markets.

The initial spread was 312.7p – 314.2p.

If you were to sell Ophir Energy at 312.7p and the shares went down then the spread might change to 301.8p – 303.3p. If this were the case, you might decide to take your profits by closing your spread trade at 303.3p.

P&L = (initial price of the market – closing price of the market) x stake per penny
P&L = (312.7p – 303.3p) x £10 per penny stake
P&L = 9.4p x £10 per penny
P&L = £94.00 profit

Financial markets also move up, if the market increased to 319.4p – 320.9p, you could choose to close your bet to prevent further losses. Therefore, you would buy at 320.9p.

With the same £10 per penny stake:

P&L = (initial price of the market – closing price of the market) x stake per penny
P&L = (312.7p – 320.9p) x £10 per penny stake
P&L = -8.2p x £10 per penny
P&L = -£82.00 loss

Ophir Energy Rolling Daily spread betting market taken as of 03-Feb-12.

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.

Where to Spread Bet on Research in Motion

You can trade on spread betting markets such as Research in Motion with spread betting companies like:

• FinancialSpreads
• Spreadex
• CityIndex

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Research in Motion

Should you decide to spread bet on US shares like Research in Motion then, looking at a spread betting website like Capital Spreads on Thursday, you may have seen a spread of $16.25 – $16.28.

That means you could spread trade on Research in Motion to go above $16.28 or below $16.25.

With spread betting, investors trade on every unit the market increases or decreases; in the case of the Research in Motion market a unit is $0.01 of the share’s price movement.

Accordingly, you might decide to spread bet £3 for every cent Research in Motion moves up or down.

Spread Betting on the Market to Increase

If you were to buy Research in Motion at $16.28 and the shares increased then the spread could become $16.56 – $16.59. If so, you could close your trade at $16.56.

Your P&L = (settlement level of the market – opening level of the market) x stake per cent
Your P&L = ($16.56 – $16.28) x £3 per cent stake
Your P&L = $0.28 x £3 per cent
Your P&L = £84 profit

Conversely, if the market decreased to, for example, $15.95 – $15.98, you may want to close your trade to prevent further losses. If that were to happen, you would sell the market at $15.95.

With the same £3 per cent stake:

Your P&L = (settlement level of the market – opening level of the market) x stake per cent
Your P&L = ($15.95 – $16.28) x £3 per cent stake
Your P&L = -$0.33 x £3 per cent
Your P&L = -£99 loss

Spread Betting on the Market to Decrease

One major advantage of spread betting is that investors can short the markets.

If you recall, initially the market was priced at $16.25 – $16.28.

If you were to sell Research in Motion at $16.25 and the shares fell then the spread could become $15.84 – $15.87. In that case, you could decide to take your profits by closing your trade at $15.87.

Your P&L = (opening level of the market – settlement level of the market) x stake per cent
Your P&L = ($16.25 – $15.87) x £3 per cent stake
Your P&L = $0.38 x £3 per cent
Your P&L = £114 profit

On the other hand, if the market had moved up to, for example, $16.66 – $16.69, you may want to close your trade to limit your losses. Assuming this was the case, you would buy the market at $16.69.

Therefore, with the same £3 per cent stake:

Your P&L = (opening level of the market – settlement level of the market) x stake per cent
Your P&L = ($16.25 – $16.69) x £3 per cent stake
Your P&L = -$0.44 x £3 per cent
Your P&L = -£132 loss

Research in Motion Rolling Daily prices accurate as of 26-Jan-12.

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.

Where to Spread Bet on African Barrick Gold

You can trade on spread betting markets such as African Barrick Gold with spread betting companies like:

• IG Index
• GFT
• CMCMarkets

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on African Barrick Gold

If you are going to spread trade on UK shares like African Barrick Gold then, on visiting a spread trading site like Financial Spreads on Friday, you may have seen a spread of 513.8p – 516.2p.

This means you could spread trade on African Barrick Gold to increase higher than 516.2p or to decrease lower than 513.8p.

When spread betting, you bet on every unit the market goes up or down. For the African Barrick Gold market a unit is 1p of the share’s price movement.

As an example, you could choose to spread bet £5 for every penny African Barrick Gold rises or falls.

Betting on the Market to Go Up

If you were to buy African Barrick Gold at 516.2p and the shares went up then you might see the spread move to 542.0p – 544.4p. In that case, you might decide to close your bet for a profit by selling at 542.0p.

Your Profits (or Losses) = (closing value of the market – initial value of the market) x stake per penny
Your Profits (or Losses) = (542.0p – 516.2p) x £5 per penny stake
Your Profits (or Losses) = 25.8p x £5 per penny
Your Profits (or Losses) = £129.00 profit

The markets can of course fall, if the market dropped to, for example, 493.0p – 495.4p, you may want to close your trade to limit your losses. Therefore, you would sell at 493.0p.

You would do this with the same £5 per penny stake:

Your Profits (or Losses) = (closing value of the market – initial value of the market) x stake per penny
Your Profits (or Losses) = (493.0p – 516.2p) x £5 per penny stake
Your Profits (or Losses) = -23.2p x £5 per penny
Your Profits (or Losses) = -£116.00 loss

Betting on the Market to Go Down

One advantage of placing a spread bet is that investors can sell the markets.

When we started this example, the price was 513.8p – 516.2p.

If you were to go short of African Barrick Gold at 513.8p and the shares decreased then the spread could move to 489.6p – 492.0p. If so, you might decide to close your bet for a profit by buying at 492.0p.

Your Profits (or Losses) = (initial value of the market – closing value of the market) x stake per penny
Your Profits (or Losses) = (513.8p – 492.0p) x £5 per penny stake
Your Profits (or Losses) = 21.8p x £5 per penny
Your Profits (or Losses) = £109.00 profit

Conversely, if the market increased to, as an example, 531.1p – 533.5p, you may decide to close your trade to prevent further losses. If this were the case, you would buy at 533.5p.

With the same £5 per penny stake:

Your Profits (or Losses) = (initial value of the market – closing value of the market) x stake per penny
Your Profits (or Losses) = (513.8p – 533.5p) x £5 per penny stake
Your Profits (or Losses) = -19.7p x £5 per penny
Your Profits (or Losses) = -£98.50 loss

African Barrick Gold Rolling Daily spread betting market quoted as of 27-Jan-12.

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.

It’s a mixed bag out there this morning with the main theme being the continued weakness in the Japanese yen.

This morning’s Bank of Japan monthly report saw the USD/JPY advancing another 0.30% this morning.

The Australian dollar is the morning’s strongest currency after traders took heart from the morning’s inflation data.

The AUD/USD is up 0.33% with the AUD/JPY up another 0.69%, capping an incredibly strong run since the 17th.

Stock market futures have a positive bias, especially the Nasdaq 100 futures which are up nearly 1% in early trading, hitting their highest levels since 2001.

Last night tech giant Apple’s earnings came in higher than analysts estimates, pushing the share price to record levels on the back of iphone 4s sales. It cements what has been a solid January for the Nasdaq 100.

Trading Today

We’ve an extremely bust day today starting with German Ifo business climate at 09.00 which is expected to improve slightly.

At 09.30 we have the release of the minutes from the last MPC meeting with preliminary GDP released at the same time. A drop of -0.1% is expected.

UK CBI industrial order expectations follow at 11.00.

The ECB could causes some excitement with president Draghi speaking at 13.15.

At 15.00 we have US pending new home sales.

Today’s main item of note is the FOMC statement released at 17.30. No change is expected but the press conference at 19.15 could cause some volatility in spread betting markets.

All day we have the World Economic Forum in Davos attended by central bankers and heads of state. There is potential for volatility if a few choice words are dropped or picked up by reporters.

USD/JPY Trading Idea

This morning the USD/JPY is pushing up to the 80.00 level for the first time in 2012. The pair has often recently reversed following a big spike higher, especially in the vicinity of the 80.00 level.

A way to trade this might be a LOWER trade predicting that the USD/JPY closes below 77.75 in 3 days time for a potential return of 106%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

The Markets Yesterday Afternoon

It was a rocky day of trading yesterday with better then expected European economic data (German PMI in particular) helping to buffer dour news from Japan and the IMF. The euro steadied after earlier falls and was up slightly against the dollar.

The IMF hit the newswire headlines with a stark warning about the world economy, calling for world (and in particular European) governments to make decisive policy action now before it is too late.

The yen suffered deeply with many pointing to Wall Street Journal’s gloomy prognosis on Japan’s economy which highlights a likely trade deficit for the first time since 1980.

This was probably good news for the Bank of Japan as it takes the pressure off the yen again.

As if a weight had been lifted, the USD/JPY shot up nearly 1% today as traders switched out of the yen.

The biggest was the GBP/JPY which was up 1.16%, as traders reward the UK’s lower than expected borrowing numbers.

The EUR/JPY wasn’t far behind though, up 0.98%, compounding a remarkable run over the last six sessions.

The EUR/GBP showed the pound’s relative strength though the pair was well off the lows of the day.

Stock markets were softer, with the Dow off by around 0.4%, as was gold.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.
 

Where to Spread Bet on Goldman Sachs

You can trade on spread betting markets such as Goldman Sachs with spread betting companies like:

• Financial Spreads
• Spreadex
• City Index

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Goldman Sachs

Should you decide to spread bet on US shares like Goldman Sachs then, on visiting a spread betting site like Capital Spreads on Thursday, you may have seen a spread of $107.63 – $107.77.

This means you can spread bet on Goldman Sachs to move above $107.77 or below $107.63.

When making a spread bet, you bet on every unit the market rises or falls. With the Goldman Sachs market a unit is $0.01 of the share’s price movement.

As an example, you could decide to trade £1 for every cent Goldman Sachs rises or falls.

Betting on the Market to Rise

If you were to go long of Goldman Sachs at $107.77 and the shares increased then the market might be re-priced at $109.12 – $109.26. If this were the case, you could close your trade at $109.12.

Profits (or Losses) = (settlement price of the market – opening price of the market) x stake per cent
Profits (or Losses) = ($109.12 – $107.77) x £1 per cent stake
Profits (or Losses) = $1.35 x £1 per cent
Profits (or Losses) = £135 profit

Markets can also fall, if the market had decreased to, as an example, $106.53 – $106.67, you might decide to close your spread bet to prevent further losses. If so, you would sell the market at $106.53.

Therefore, with the same £1 per cent stake:

Profits (or Losses) = (settlement price of the market – opening price of the market) x stake per cent
Profits (or Losses) = ($106.53 – $107.77) x £1 per cent stake
Profits (or Losses) = -$1.24 x £1 per cent
Profits (or Losses) = -£124 loss

Betting on the Market to Fall

A useful benefit of placing a spread trade is that investors can short the markets.

At the beginning of this example, the spread was $107.63 – $107.77.

If you were to sell Goldman Sachs at $107.63 and the shares decreased then the spread could become $106.35 – $106.49. If that were to happen, you might decide to close your spread bet at $106.49.

Profits (or Losses) = (opening price of the market – settlement price of the market) x stake per cent
Profits (or Losses) = ($107.63 – $106.49) x £1 per cent stake
Profits (or Losses) = $1.14 x £1 per cent
Profits (or Losses) = £114 profit

However, if the market were to rise up to, for example, $108.54 – $108.68, you could choose to close your bet to prevent further losses. Assuming this was the case, you would buy the market at $108.68.

You would do this with the same £1 per cent stake:

Profits (or Losses) = (opening price of the market – settlement price of the market) x stake per cent
Profits (or Losses) = ($107.63 – $108.68) x £1 per cent stake
Profits (or Losses) = -$1.05 x £1 per cent
Profits (or Losses) = -£105 loss

Goldman Sachs Rolling Daily prices correct as of 19-Jan-12.

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.

Where to Spread Bet on Dixons Retail

You can trade on spread betting markets such as Dixons Retail with spread betting companies like:

• Financial Spreads
• GFT
• City Index

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Dixons Retail

Should you decide to spread trade on UK shares such as Dixons Retail then, looking at a spread betting company’s website on Friday, you may have seen a spread of 13.3p – 14.0p.

Therefore, you could bet on Dixons Retail to increase higher than 14.0p or to decrease lower than 13.3p.

When making a spread bet, you bet on every unit the market rises or falls. Specifically, for the Dixons Retail market a unit is 1p of the share’s price movement.

Accordingly, you might decide to trade £25 for every penny Dixons Retail increases or decreases.

Buying – Spread Betting on the Market to Move Up

If you were to buy Dixons Retail at 14.0p and the shares rose then the market might be re-priced at 16.8p – 17.5p. In that case, you might decide to close your bet for a profit at 16.8p.

Your Profit/Loss = (final level of the market – initial level of the market) x stake per penny
Your Profit/Loss = (16.8p – 14.0p) x £25 per penny stake
Your Profit/Loss = 2.8p x £25 per penny
Your Profit/Loss = £70.00 profit

However, if the market were to drop down to, as an example, 10.8p – 11.5p, you might decide to close your bet to restrict your losses. Therefore, you would sell your spread bet at 10.8p.

You would do this with the same £25 per penny stake:

Your Profit/Loss = (final level of the market – initial level of the market) x stake per penny
Your Profit/Loss = (10.8p – 14.0p) x £25 per penny stake
Your Profit/Loss = -3.2p x £25 per penny
Your Profit/Loss = -£80.00 loss

Selling – Spread Betting on the Market to Move Down

One major advantage of placing a spread bet is that you can short the markets.

If you recall, initially the spread was 13.3p – 14.0p.

If you were to sell Dixons Retail at 13.3p and the shares decreased then the spread could change to 9.3p – 10.0p. If that were to happen, you might want to close your bet for a profit by buying at 10.0p.

Your Profit/Loss = (initial level of the market – final level of the market) x stake per penny
Your Profit/Loss = (13.3p – 10.0p) x £25 per penny stake
Your Profit/Loss = 3.3p x £25 per penny
Your Profit/Loss = £82.50 profit

However, if the market had moved up to 16.4p – 17.1p, you may want to close your trade to prevent further losses. If this were the case, you would buy the market at 17.1p.

With the same £25 per penny stake:

Your Profit/Loss = (initial level of the market – final level of the market) x stake per penny
Your Profit/Loss = (13.3p – 17.1p) x £25 per penny stake
Your Profit/Loss = -3.8p x £25 per penny
Your Profit/Loss = -£95.00 loss

Dixons Retail Rolling Daily prices taken as of 20-Jan-12.

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.

After a weekend of analysis following the downgrade of major European counties including France and Austria, the financial spread betting markets are predictably trading lower so far this morning.

Most currency pairs and stock market futures imply a ‘risk off’ mentality for the day. However, so far, the falls are mild. The EUR/USD is down just 0.10% as the dollar index pulls back from recent highs.

Other dollar pairs are seeing similar moves with the AUD/USD and NZD/USD bouncing off the lows to push back towards Friday’s close.

In forex spread betting, the main currency to highlight this morning is the Canadian dollar with USD/CAD down 0.38%, the top mover so far this morning.

After flirting with the ¥77.00 level in early trading, the USD/JPY is firmly back within its median trading range and down 0.17% on the day so far.

The yen’s strength pushing other pairs lower with the EUR/JPY hitting new lows ten year lows, down 0.24%.

Gold is pushing higher, testing the $1,650 level once again.

Trading Today

We have a light economic calendar today with lighter trading possible owing to the US bank holiday today.

The day’s main highlight is ECB president Draghi speaking at 18.00.

EUR/USD Trading Idea

The euro crisis has tended to follow a pattern of big headlines & falls followed by a brief period of respite when European leaders put out reassuringly headlines.

Markets then figure out that the reassurances are lacking substance and the whole cycle starts again.

After Friday’s big falls on the EUR/USD, there could be some short term respite as Europe’s leaders do their best to sooth markets. In addition, the EUR/USD has been a very good pull back currency over the last six months with big moves in either direction often followed by a retracement back in the opposite direction.

A way to play this might be a HIGHER trade predicting that the EUR/USD is higher than 1.2750 in 7 days time for a potential return of 170%.

Editor’s note: If you lose a financial fixed odds trade you lose 100% of your stake.

Also see spread betting on the EUR/USD.

The Markets on Friday Afternoon

After a week of tepid trading, volatility returned to financial markets in Friday afternoon as the eurozone crisis reared its ugly head once more.

France and Austria’s credit ratings were on the line as the Greek debt talks collapsed. Adding to the general negative tone, US trade balance numbers came in worse than expected.

The euro was being singled out on a generally negative day with the EUR/JPY hitting its lowest levels since 2000 and the EUR/USD dropping 1.20% on the day. The EUR/GBP was also trading lower despite UK PPI Input dropping 0.6%.

 
Before trading with spread betting, CFDs or financial fixed odds ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved. These products may not be suitable for all investors, seek independent financial advice where necessary.

Note that spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial investment.

The Financial Fixed Odds update by David Evans, Market Analyst, BetOnMarkets.

This website content does not constitute investment advice. No individual contributor, contributing company, BetOnMarkets nor Online-Spread-Betting.com accept any responsibility for any use that may be made of the content.
 

Where to Spread Bet on Invensys

You can trade on spread betting markets such as Invensys with spread betting companies like:

• CapitalSpreads
• GFT
• CityIndex

To see which companies offer 24 hour trading, new account offers, stop losses and trading charts see Spread Betting Companies.

How to Spread Bet on Invensys

If you decide to spread trade on UK shares like Invensys then, looking at a spread trading website like Financial Spreads on Friday, you may have seen a spread of 179.5p – 180.3p.

This means you could bet on Invensys to go higher than 180.3p or to go lower than 179.5p.

With spread betting, you bet on every unit the market moves up or down; with the Invensys market a unit is 1p of the share’s price movement.

For this instance, you could decide to trade £15 for every penny Invensys rises or falls.

Spread Betting on the Market to Increase

If you bought Invensys at 180.3p and the shares increased then the spread might change to 186.6p – 187.4p. If this were the case, you might decide to close your spread trade at 186.6p.

Profit/Loss = (closing price of the market – initial price of the market) x stake per penny
Profit/Loss = (186.6p – 180.3p) x £15 per penny stake
Profit/Loss = 6.3p x £15 per penny
Profit/Loss = £94.50 profit

The markets can of course fall, if the market decreased to, for example, 174.9p – 175.7p, you may decide to close your trade to restrict your losses. If so, you would sell at 174.9p.

So, with the same £15 per penny stake:

Profit/Loss = (closing price of the market – initial price of the market) x stake per penny
Profit/Loss = (174.9p – 180.3p) x £15 per penny stake
Profit/Loss = -5.4p x £15 per penny
Profit/Loss = -£81.00 loss

Spread Betting on the Market to Decrease

One of the benefits of placing a spread bet is that you can short the markets.

At the start of the example, the spread was 179.5p – 180.3p.

If you were to sell Invensys at 179.5p and the shares decreased then the spread might change to 173.0p – 173.8p. If that happened, you might want to close your spread bet for a profit by buying at 173.8p.

Profit/Loss = (initial price of the market – closing price of the market) x stake per penny
Profit/Loss = (179.5p – 173.8p) x £15 per penny stake
Profit/Loss = 5.7p x £15 per penny
Profit/Loss = £85.50 profit

However, if the market were to rise up to 183.5p – 184.3p, you might want to close your bet to limit your losses. If that were to happen, you would buy your spread bet at 184.3p.

Therefore, with the same £15 per penny stake:

Profit/Loss = (initial price of the market – closing price of the market) x stake per penny
Profit/Loss = (179.5p – 184.3p) x £15 per penny stake
Profit/Loss = -4.8p x £15 per penny
Profit/Loss = -£72.00 loss

Invensys Rolling Daily prices accurate as of 13-Jan-12.

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.