This page was created before Scottish and Newcastle was de-listed from the FTSE in April 2008.
This page is maintained as part of the SpreadBets.org.uk website archive.
As a result of Scottish and Newcastle being de-listed, readers are warned that data on this page will not be accurate.
The Scottish and Newcastle (December) spread betting market is trading at 748.1 - 749.8 with FinancialSpreads.com.
As with many financial markets, you can financial spread bet on the future price of shares, like Scottish and Newcastle, to go up or down.
In this case the market in question is the Scottish and Newcastle (December) market which closes on 18-Dec-07.
You can bet on whether the share price will finish above 749.8p or below 748.1p on 18-Dec-07.
With this Scottish and Newcastle (December) market, you trade in £x per penny of the S&N share price. For example, if your stake was £10 per penny and the S&N share price moves 6p then that would be an £60 difference to your profit / loss.
Let's say you check the live quote on a spread betting website and it gives current spread of 748.1 - 749.8. Let’s also say you have done your market research and think that the Scottish and Newcastle shares will go above 749.8p.
So:
1) You feel that the Scottish and Newcastle (December) should go up
2) Therefore you go long (buy). You risk £5 per point
3) The value of the market increases. You decide to let your bet run to expiry (18-Dec-07)
4) The markets closes at 761.8
5) You bought the spread at 749.8
6) Profit = (closing price - opening level) x stake
7) Profit = (761.8p - 749.8p) x £5 per penny stake
8) Profit = 12p x £5 per penny stake
9) Profit = £60.00
However if the market didn't move as expected and had the Scottish and Newcastle shares fallen and the market closed lower at 736.1 then you would have lost money on your trade.
5) Opening price = 749.8
6) Loss = (closing price - opening price) x stake
7) Loss = (736.1p - 749.8p) x £5 per penny stake
8) Loss = -13.7p x £5 per penny stake
9) Loss = -£68.50
Prices quoted as of 13-Nov-2007.
"Spread Bet on Scottish and Newcastle" last update by RThomas, 25-Aug-2009
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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