Financial spread betting allows investors to speculate on a wide range of markets, including FTSE 250 shares, tax free* and with no brokers' fees, or commissions.
Here are a series of detailed spread betting guides to help answer the most common questions about spread betting on individual FTSE 250 shares:
The above spread betting markets may also be available with other companies. Also see Comparison Table Notes.
What Currencies Can I Spread Bet In?
Note that with the above spread betting companies you can spread bet on any of the markets they offer, including FTSE 250 shares, in either Pounds, Euros or Dollars, e.g. £2 per point, $3 per point, €5 per point etc.
Spread Betting on Related Markets
If you are interested in speculating on the UK markets then most of the above spread trading companies also let you spread bet on:
The FTSE 100, a stock market index which represents the largest 100 companies, ranked by market capitalisation, on the London Stock Exchange
The FTSE 250, an index that tracks the next 250 largest UK companies listed on the LSE
As well as a range of Sterling based forex markets such as:
Looking at the equities markets, at the moment, the price of the easyJet Rolling Daily market is 394.7p - 395.9p with spread betting firms such as capital spreads.
Like most large cap shares listed on the leading exchanges, an investor can spread bet on the easyJet shares either increasing or decreasing in value. With this easyJet Rolling Daily market, investors can place a spread bet on:
a) easyJet shares to rise higher than 395.9p, or
b) easyJet shares to fall lower than 394.7p.
With the easyJet market you trade in £X per penny, where a penny is 1p of easyJet share movement. As a brief example, if you invested £20 per penny and the easyJet stock moved 5p then you would see a change to your bottom line of £100.
easyJet Equities Spread Trading Example
As a quick example, let’s say you see the real time price on an online spread trading website and it shows a spread of 394.7p - 395.9p. After suitable analysis of the markets, you may come to think that the easyJet share price will increase and go higher than 395.9p. This means:
You think the easyJet shares should rise
As a result, you choose to ‘buy’ the market at 395.9p and invest £10 per penny
The share price rises with the spread moving to 407.8p - 409.0p
With the new price you can decide to take a profit and close your position. You would do this by selling at 407.8p
Profits (or losses) = (407.8p - 395.9p) x £10 per penny
Profits (or losses) = 11.9p x £10 per penny
Profits (or losses) = £119.00 profit
Investments don’t always go to plan. Had the market failed to move as forecast, and had the easyJet stock decreased in value, with the spread dropping to 385.4p - 386.6p, then you could choose to settle your position and prevent any further losses. In order to do this you would sell at 385.4p.
Profits (or losses) = (385.4p - 395.9p) x £10 per penny
Profits (or losses) = -10.5p x £10 per penny
Profits (or losses) = -£105.00 loss
Note that with a Rolling Daily Spread Bet if you Roll a bet over to the subsequent day you might incur a charge or income for every day that the trade is still open. For more information see: Rolling Daily Spread Betting Charges.
(Market quoted: 07-Feb-11)
Where Can I Find Live Prices and Candlestick Charts?
Some spread betting companies, like Financial Spreads, provide free live spread betting prices on FTSE 250 shares, as well as a wide range of other financial markets, for their account holders.
In addition they also offer historic data and customisable candlestick charts to help investors make the most informed trading decisions.
Candlestick charts and live spread betting prices are currently available with:
Please note that spread betting charts and real-time prices may also be offered by other spread firms.
Example FTSE 250 shares chart from FinancialSpreads.com:
AdvertFinancial Spreads
Spread Betting - No Fees, No Commissions, Free Charts and Live Prices.
Spread Bet on Indices, Forex, Commodities, Shares and more. For details see Financial Spreads.
"Spread Bet on FTSE 250 Shares" last update by R Thomas, 27-Apr-2012
Warning: Financial spread betting carries a high level of risk. You can lose more than your initial investment or stake. Financial spread betting may not be suitable for all investors. Only trade with money that you can afford to lose. Make sure you fully understand the risk involved. If necessary, seek independent financial advice.
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Spread Betting Companies
Warning: Financial spread betting carries
a high level of risk. You can lose more than your
initial investment or stake. Financial spread betting
may not be suitable for all investors. Only trade with money that you
can afford to lose. Make sure you fully understand the risk involved.
If necessary, seek independent financial advice.
* Spread betting is tax free in the UK.
This tax free status is subject to change
and can differ if you pay tax outside the UK.