Spread Bet on Royal Dutch Shell
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How to Spread Bet on Shell
At the time of writing the Royal Dutch Shell (B) (March) market is quoted at 2026.7p - 2033.5p with FinancialSpreads.com.
As with many financial markets, you can spread bet on the future value of shares. That is to say, you can spread bet on shares rising or falling. Eg spread trading on the Royal Dutch Shell (B) shares going up to more than 2033.5p by 18-Dec-07.
With this Shell equities market, you trade in £X per penny, where a penny is 1p of Shell share price movement. For example if your stake was £10 per penny and the Shell shares moves 6p then that would be an £60 difference to your profits.
So looking at an example, let's say you check the live quote on financialspreads.com and it gives the current spread of 2026.7 - 2033.5 and you have done your market analysis and think that the Royal Dutch Shell (B) shares will rise to more than 2033.5.
1) You think the Royal Dutch Shell (B) shares should go up
2) You decide to 'buy' the market. You buy £2 per penny
3) The market rises. You run the spread bet to the settlement day
4) The market settles at 2069.2p
5) Opening value = 2033.5p
6) Profits = (closing price - opening level) x stake
7) Profits = (2069.2p - 2033.5p) x £2 per penny stake
8) Profits = 35.7p x £2 per penny stake
9) Profits = £71.40
Nevertheless if the market didn't work as expected and had the Royal Dutch Shell (B) Shares gone down and the market settled lower at 2001.3p, then you would have lost on this spread trade.
5) Price you bought the spread at 2033.5p
6) Loss = (closing price - opening level) x stake
7) Loss = (2001.3p - 2033.5p) x £2 per penny stake
8) Loss = -32.2p x £2 per penny stake
9) Loss = -£64.40
(Prices quoted as of 23-Nov-2007).
Where to Financial Spread Bet on Shell?
You can spread bet on Shell with any of the following companies:
 > Capital Spreads
 > Financial Spreads
 > GFT
 > IG Index
 > paddypowertrader
 > Spreadex
Where to Find Live Prices?
All of the above companies provide access to real-time prices to their account holders.
"Spread Bet on Royal Dutch Shell" written by RThomas, last updated 26-Oct-2008
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