Spread Betting on HSBC Shares
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HSBC shares have seen a slight increase in expectation over the last few days.
On Monday the HSBC December shares were trading at 887.0p - 889.8p with FinancialSpreads.com. Today Financial Spreads have increased their quote to 889.3p - 892.1p. Despite the poor credit markets, it seems that Activist Investor Eric Knight has been behind the recent rise. He's been voicing is disappointment over company performance and now met with nearly half of the top 20 HSBC shareholders.
Are positive management changes afoot at HSBC? Or with large unknowns still surrounding the US Sub-Prime Markets and the subsequent knock on effects that they are having on Interbank lending cause HSBC performance issues?
How to Spread Bet on HSBC Shares
Let's say you see the above price on a spread betting site like FinancialSpreads.com, ie they're offering a spread of 889.3 - 892.1, then let's also say...
1) You have done your analysis and think that the HSBC shares should go up
2) You decide you want to 'buy' the market. You invest £15 per point
3) The market increases. You run the bet to the settlement day (18-Dec-07 for the HSBC December market)
4) The shares close at 894.8p
5) Opening value = 892.1p
6) Profits = (closing level - opening level) x stake
7) Profits = (894.8 - 892.1) x £15 per point stake
8) = 2.7 x £15 per point stake
9) Profits = £40.5
Nevertheless had the HSBC shares not performed so well and the market closed lower than expected at 886.2p, then you would have lost money on your investment.
5) Price you bought the market at 892.1
6) P&L = (closing price - opening price) x stake
7) P&L = (886.2 - 892.1) x £15 per point stake
8) = -5.9 x £15 per point stake
9) Loss = -£88.5
Where to spread bet on Equities
You can currently spread bet on HSBC other equities at:
FinancialSpreads.com
Capital Spreads
"Spread Betting on HSBC Shares" written by RThomas, last updated 11-Jul-2008
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Spread Betting on HSBC Shares,
On Monday the HSBC December shares were trading at 887.0p - 889.8p with FinancialSpreads.com. Today Financial Spreads have increased their quote to 889.3p - 892.1p. Despite the poor credit markets, it seems that Activist Investor...read.
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