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.
If you decide to spread bet on Small Caps or UK shares like BP then the principle is the same, looking at a spread betting website like Financial Spreads, at the moment you would see a spread of 481.7p - 482.4p.
That means you could spread trade on BP shares to go higher than 482.4p or to go lower than 481.7p.
If you are spread betting, you bet on every unit the market moves up or down; for the BP market a unit is 1p of the share's price movement.
For instance, you might choose to bet £5 for every penny that the BP share price goes up or down.
Buying - Spread Betting on the UK Equities to Go Up
If you were to buy BP at 482.4p and the shares went up then the spread might change to 498.1p - 498.8p. If that were to happen, you might decide to close your trade for a profit by selling at 498.1p.
Profit/Loss = (final price of the market - opening value of the market) x stake per penny
Profit/Loss = (498.1p - 482.4p) x £5 per penny stake
Profit/Loss = 15.7p x £5 per penny
Profit/Loss = £78.50 profit
Conversely, if the market had moved down to 467.9p - 468.6p, you could choose to close your spread bet to restrict your losses. If so, you would sell the market at 467.9p.
Therefore, with the same £5 per penny stake:
Profit/Loss = (final price of the market - opening value of the market) x stake per penny
Profit/Loss = (467.9p - 482.4p) x £5 per penny stake
Profit/Loss = -14.5p x £5 per penny
Profit/Loss = -£72.50 loss
Buying - Spread Betting on the UK Equities to Go Down
A benefit of using a spread bet is that you can sell the markets.
At the start of the example, the market was 481.7p - 482.4p.
If you were to sell BP at 481.7p and the shares decreased then the spread could become 464.6p - 465.3p. In that case, you might decide to close your trade at 465.3p.
Profit/Loss = (opening value of the market - final price of the market) x stake per penny
Profit/Loss = (481.7p - 465.3p) x £5 per penny stake
Profit/Loss = 16.4p x £5 per penny
Profit/Loss = £82.00 profit
The markets can of course rise, if the market had risen to, for example, 496.2p - 496.9p, you could choose to close your bet to limit your losses. If that happened, you would buy back at 496.9p.
So, with the same £5 per penny stake:
Profit/Loss = (opening value of the market - final price of the market) x stake per penny
Profit/Loss = (481.7p - 496.9p) x £5 per penny stake
Profit/Loss = -15.2p x £5 per penny
Profit/Loss = -£76.00 loss
BP Rolling Daily spread betting prices quoted 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 Small Cap and Aim Shares Spread Betting', Guide by D. Jones, last update: 15-May-12
Related articles:
Shares Spread Betting, 22-May-12,
Shares Spread Betting guide. Your Shares Spread Betting questions answered: where to spread bet on stocks and shares, how to trade equities, where to find free Shares charts, real time Forex prices, how to trade and......see: Shares Spread Betting
Shares Spreads, 15-May-12,
Spread Betting guide to Shares. Your Shares Spread Betting questions answered: where to find free Shares charts, real time prices, how to trade and...see: Shares Spreads
FTSE 100 Shares Spread Betting, 16-May-12,
FTSE 100 Shares Spread Betting guide, a spread betting guide to speculating on FTSE 100 shares covering worked examples, where to find FTSE 100 equities charts, where to spread bet and...see: FTSE 100 Shares Spread Betting
US Shares Spread Betting, 16-May-12,
US Shares Spread Betting guide, a spread betting guide to speculating on US shares covering worked examples, where to find US equities charts, where to spread bet and...see: US Shares Spread Betting
American Stocks Spread Betting, 16-May-12,
American Stocks Spread Betting guide, a spread betting guide to speculating on American shares covering worked examples, where to find American equities charts, where to spread bet and...see: American Stocks Spread Betting
Nasdaq Stocks Spread Betting, 16-May-12,
Nasdaq Stocks Spread Betting guide, a spread betting guide to speculating on Nasdaq shares covering worked examples, where to find Nasdaq equities charts, where to spread bet and...see: Nasdaq Stocks Spread Betting
German Shares Spread Betting, 16-May-12,
German Shares Spread Betting guide, a spread betting guide to speculating on German shares covering worked examples, where to find German equities charts, where to spread bet and...see: German Shares Spread Betting
French Shares Spread Betting, 16-May-12,
French Shares Spread Betting guide, a spread betting guide to speculating on French shares covering worked examples, where to find French equities charts, where to spread bet and...see: French Shares Spread Betting
Irish Shares Spread Betting, 16-May-12,
Irish Shares Spread Betting guide, a spread betting guide to speculating on Irish shares covering worked examples, where to find Irish equities charts, where to spread bet and...see: Irish Shares Spread Betting
South African Shares Spread Betting, 16-May-12,
South African Shares Spread Betting guide, a spread betting guide to speculating on South African shares covering worked examples, where to find South African equities charts, where to spread bet and...see: South African Shares Spread Betting
Indian Shares Spread Betting, 15-May-12,
Indian Shares Spread Betting guide, a spread betting guide to speculating on Indian shares covering worked examples, where to find Indian equities charts, where to spread bet and...see: Indian Shares Spread Betting
Dutch Shares Spread Betting, 15-May-12,
Dutch Shares Spread Betting guide, a spread betting guide to speculating on Dutch shares covering worked examples, where to find Dutch equities charts, where to spread bet and...see: Dutch Shares Spread Betting
Swedish Shares Spread Betting, 15-May-12,
Swedish Shares Spread Betting guide, a spread betting guide to speculating on Swedish shares covering worked examples, where to find Swedish equities charts, where to spread bet and...see: Swedish Shares Spread Betting
Norwegian Shares Spread Betting, 15-May-12,
Norwegian Shares Spread Betting guide, a spread betting guide to speculating on Norwegian shares covering worked examples, where to find Norwegian equities charts, where to spread bet and...see: Norwegian Shares Spread Betting
Danish Shares Spread Betting, 15-May-12,
Danish Shares Spread Betting guide, a spread betting guide to speculating on Danish shares covering worked examples, where to find Danish equities charts, where to spread bet and...see: Danish Shares Spread Betting
FTSE 250 Shares Spread Betting, 15-May-12,
FTSE 250 Shares Spread Betting guide, a spread betting guide to speculating on FTSE 250 shares covering worked examples, where to find FTSE 250 equities charts, where to spread bet and...see: FTSE 250 Shares Spread Betting
Delisted Shares Spread Betting, 15-May-12,
Delisted Shares Spread Betting guide, a spread betting guide to speculating on Delisted shares covering worked examples, where to find Delisted equities charts, where to spread bet and...see: Delisted Shares Spread Betting
Looking to improve your trading results? Get free trading tips and trading analysis as well as the latest trading offers »
Trading News.
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.
Disclaimer:
Online-Spread-Betting.com does not endorse the information and
analysis available on this site. It is provided purely for information
purposes and is delivered as a personal view of the writer. Under no circumstances
is the information hereon to be used or considered as, an offer to sell, or a
solicitation of any offer to buy. The website content does not constitute investment
advice and neither the individual contributor nor Online-Spread-Betting.com accepts any
responsibility for any use that may be made of the content.
* Tax Free Trading:
Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.
