Spread betting markets on European Shares may also be available through other companies. Notes.
2) Spread Betting on UK 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 trade on UK shares such as HSBC then, on visiting a spread betting site like Capital Spreads, at the time of writing you would find a spread trading price of 705.1p - 706.2p.
Therefore, you can bet on HSBC shares to move above 706.2p or below 705.1p.
If you are spread betting, you trade on every unit the market moves up or down. With the HSBC market a unit is 1p of the share's price movement.
For instance, you might decide to spread bet £5 for every penny that the HSBC share price rises or falls.
Spread Betting on the FTSE Shares to Rise
If you were to go long of HSBC at 706.2p and the shares went up then the spread could become 724.6p - 725.7p. Assuming this was the case, you might choose to close your trade for a profit by selling at 724.6p.
Profit or Loss = (closing value of the market - initial value of the market) x stake per penny
Profit or Loss = (724.6p - 706.2p) x £5 per penny stake
Profit or Loss = 18.4p x £5 per penny
Profit or Loss = £92.00 profit
Financial markets also move down, if the market were to drop down to 685.0p - 686.1p, you may want to close your trade to prevent further losses. If that were to happen, you would sell the market at 685.0p.
Therefore, with the same £5 per penny stake:
Profit or Loss = (closing value of the market - initial value of the market) x stake per penny
Profit or Loss = (685.0p - 706.2p) x £5 per penny stake
Profit or Loss = -21.2p x £5 per penny
Profit or Loss = -£106.00 loss
Spread Betting on the FTSE Shares to Fall
One advantage of placing a spread trade is that, with spread betting companies, investors holders can short the markets.
Initially, the market was priced at 705.1p - 706.2p.
If you were to go short of HSBC at 705.1p and the shares fell then the spread might change to 687.5p - 688.6p. If that happened, you might decide to close your trade for a profit at 688.6p.
Profit or Loss = (initial value of the market - closing value of the market) x stake per penny
Profit or Loss = (705.1p - 688.6p) x £5 per penny stake
Profit or Loss = 16.5p x £5 per penny
Profit or Loss = £82.50 profit
Markets can also rise, if the market had moved up to, for example, 723.0p - 724.1p, you may decide to close your trade to limit your losses. If this were the case, you would buy back at 724.1p.
You would do this with the same £5 per penny stake:
Profit or Loss = (initial value of the market - closing value of the market) x stake per penny
Profit or Loss = (705.1p - 724.1p) x £5 per penny stake
Profit or Loss = -19.0p x £5 per penny
Profit or Loss = -£95.00 loss
HSBC 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.
'FTSE 100 Shares Spread Betting', Guide by D. Jones, last update: 16-May-12
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Spread Betting carries a high level of risk
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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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