Spread Bet on BP
|
|
|
The current price of the BP (March) spread betting market is 577.1 - 579.8p with FinancialSpreads.com.
As with many markets, spreadbettors can financial spread bet the future value of shares. ie, spreadbettors can trade the shares going up or down, for example spread betting on the BP shares going up to more than 579.8 by 18-Mar-08.
With BP shares, you trade in £X per point, where a point is 1p of BP movement. If your stake was £10 per point and the BP moves 4p then that would be a £40 difference to your profits.
1) Let's say you see the live quote on a spread betting website and it is currently quoting 577.1-579.8p and you think that the BP share price will go up above 579.8p
2) Therefore you go long (buy). You risk £5 per point
3) The market rises. You run the bet until the settlement day, 18-Mar-08
4) The shares settle at 590.2p
5) Your bought the market at 579.8p
6) Profit / loss = (closing price - opening level) x stake
7) = (590.2 - 579.8) x £5 per point stake
8) = 10.4 x £5 per point stake
9) = £52
Spread bet on BP - losing example
However if the market did not move as you originally forecast and had the BP shares gone against your trade and the shares closed down at 568.4p, then you would have lost money on your trade.
5) Opening price = 579.8p
6) Profit / loss = (closing level - opening price) x stake
7) Loss = (568.4 - 579.8) x £5 per point stake
8) = -11.4 x £5 per point stake
9) = -£57
Where to spread bet on Gold:
You can currently spread bet on Gold and other commodities at:
FinancialSpreads.com
Capital Spreads
"Spread Bet on BP" written by RThomas, last updated 26-Sep-2007
Similar articles:
Shorting the Stock Market,
Shorting the Stock Market >> Genuine long-term investors should have no fear over short selling as they are supposed to be in the game for an extended term and are buying on yield, prospects, growth etc. Why worry if investors are spread betting on a market to go down? The fact that the stock has fallen only means...read.
Should Investors be Allowed to Short Shares?,
Should Investors be Allowed to Short Shares? >> Looking at the Alliance and Leicester / Satander deal there has been a slightly different reaction. No one felt sorry for traders shorting via borrowing stock, placing CFDs, spread betting or otherwise. There was a lesson for everyone on the Friday that the possibility of a deal was announced. Some £150m was probably lost in just a few minutes by...read.
Spread Bet on Royal Dutch Shell,
At the time of writing the Royal Dutch Shell (B) (March) market is quoted at 2026.7p - 2033.5p with FinancialSpreads.com. To trade Shell...read.
Spread Bet on Northern Rock,
At the time of publication the Northern Rock spread betting market is trading at 87.1 - 87.9 with Capital Spreads....read.
Spread Bet on Vodaphone,
Free update on Vodaphone market prices, where to spread bet on Vodaphone and how to spread bet on Vodaphone....read.
Spread Bet on Scottish and Newcastle,
A look at how you can win (and lose) by spread betting on Scottish and Newcastle. The Scottish and Newcastle market is trading at 748.1 - 749.8 with FinancialSpreads.com but how to make a profit?...read.
Spread Bet on BP,
BP financial spread betting prices and how to spread bet on BP shares...read.
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.
|
|
|
Free Financial Email: Latest Spread Betting Offers and where to find narrow spreads.
Click here to sign up.
|
|
