FTSE Spread Betting





Also see Live FTSE 100 chart below.



Where Can I Spread Bet on the FTSE 100?

You can spread bet on the FTSE, as well as thousands of other financial markets, by using an account with these spread betting firms:

Financial Spreads ETX Capital Spreadex IG City Index
FTSE 100 Daily Financial Spreads FTSE Daily ETX Capital FTSE Daily Spreadex FTSE Daily IG FTSE Daily City Index FTSE Daily
FTSE 100 Futures Financial Spreads FTSE Future ETX Capital FTSE Future Spreadex FTSE Future IG FTSE Future City Index FTSE Future
Wall Street (Dow) Daily Financial Spreads Wall Street (Dow) Daily ETX Capital Wall Street (Dow) Daily Spreadex Wall Street (Dow) Daily IG Wall Street (Dow) Daily City Index Wall Street (Dow) Daily
Wall Street (Dow) Futures Financial Spreads Wall Street Future ETX Capital Wall Street Future Spreadex Wall Street Future IG Wall Street Future City Index Wall Street Future
DAX 30 Daily Financial Spreads DAX 30 Daily ETX Capital DAX 30 Daily Spreadex DAX 30 Daily IG DAX 30 Daily City Index DAX 30 Daily
DAX 30 Futures Financial Spreads DAX 30 Future ETX Capital DAX 30 Future Spreadex DAX 30 Future IG DAX 30 Future City Index DAX 30 Future
S&P 500 Daily Financial Spreads S&P 500 Daily ETX Capital S&P 500 Daily Spreadex S&P 500 Daily IG S&P 500 Daily City Index S&P 500 Daily
S&P 500 Futures Financial Spreads S&P 500 Future ETX Capital S&P 500 Future Spreadex S&P 500 Future IG S&P 500 Future City Index S&P 500 Future
Other Indices Financial Spreads More Indices? ETX Capital More Indices? Spreadex More Indices? IG More Indices? City Index More Indices?
The above spread betting markets may also be available with other companies. Also see spread betting comparison notes.


Live FTSE 100 Chart




Live FTSE 100 Chart



Spread Bet on UK Shares

Spread betting allows investors to speculate on a wide range of markets, including UK shares, tax free* and with no brokers’ fees, or commissions.

Berlow, a series of guides to help answer the most common questions about spread betting on individual UK shares:

Company Spread Betting Review Page Index
  Anglo American   Anglo American Spread Betting GuideFTSE 100
  Barclays   Barclays Spread Betting GuideFTSE 100
  BHP Billiton   BHP Billiton Spread Betting GuideFTSE 100
  BP   BP Spread Betting GuideFTSE 100
  BSkyB   BSkyB Spread Betting GuideFTSE 100
  GlaxoSmithKline   GlaxoSmithKline Spread Betting GuideFTSE 100
  Glencore   Glencore Spread Betting GuideFTSE 100
  HSBC   HSBC Spread Betting GuideFTSE 100
  IAG   IAG Spread Betting GuideFTSE 100
  Lloyds   Lloyds Spread Betting GuideFTSE 100
  M&S   M&S Spread Betting GuideFTSE 100
  Next   Next Spread Betting GuideFTSE 100
  RBS   RBS Spread Betting GuideFTSE 100
  Rio Tinto   Rio Tinto Spread Betting GuideFTSE 100
  Royal Mail   Royal Mail Spread Betting GuideFTSE 100
  Sainsburys   Sainsburys Spread Betting GuideFTSE 100
  Shell   Shell Spread Betting GuideFTSE 100
  Tesco   Tesco Spread Betting GuideFTSE 100
  Vodafone   Vodafone Spread Betting GuideFTSE 100


Where Can I Spread Bet on UK Shares?

Shares

Financial Spreads ETX Capital Spreadex IG City Index
FTSE 100 Shares Financial Spreads FTSE 100 Shares ETX Capital FTSE 100 Shares Spreadex FTSE 100 Shares IG FTSE 100 Shares City Index FTSE 100 Shares
FTSE 250 Shares Financial Spreads FTSE 250 Shares ETX Capital FTSE 250 Shares Spreadex FTSE 250 Shares IG FTSE 250 Shares City Index FTSE 250 Shares
Wall Street Shares Financial Spreads Wall Street Shares ETX Capital Wall Street Shares Spreadex Wall Street Shares IG Wall Street Shares City Index Wall Street Shares
S&P 500 Shares Financial Spreads S&P 500 Shares ETX Capital S&P 500 Shares Spreadex S&P 500 Shares IG S&P 500 Shares City Index S&P 500 Shares
NASDAQ 100 Shares Financial Spreads NASDAQ 100 Shares ETX Capital NASDAQ 100 Shares Spreadex NASDAQ 100 Shares IG NASDAQ 100 Shares City Index NASDAQ 100 Shares
DAX 30 Shares Financial Spreads DAX 30 Shares ETX Capital DAX 30 Shares Spreadex DAX 30 Shares IG DAX 30 Shares City Index DAX 30 Shares
CAC 40 Shares Financial Spreads CAC 40 Shares ETX Capital CAC 40 Shares Spreadex CAC 40 Shares IG CAC 40 Shares City Index CAC 40 Shares
Irish Shares Financial Spreads Irish Shares ETX Capital Irish Shares Spreadex Irish Shares IG Irish Shares City Index Irish Shares
Other Shares Financial Spreads Other Shares ETX Capital Other Shares Spreadex Other Shares IG Other Shares City Index Other Shares
The above spread betting markets may also be available with other companies. Also see financial spread betting comparison notes.




Where Can I Get Live Spread Betting Prices and Charts for the FTSE 100?

The simple chart above offers you a valuable look at how the market is trending.

Of course, for investors that are spread trading the FTSE, the providers mentioned above have real-time prices as well as professional level charts.

Example spread trading chart:

FTSE Spread Betting - Example Chart



FTSE 100 Spread Betting Example

FTSE Spread Betting
If you decide to spread bet on a stock market index such as the FTSE then, on visiting a firm like IG.com, you may get a quote of 6826.3 – 6827.3.

As a result, you could bet on the FTSE to go higher than 6827.3 or to go lower than 6826.3.

When spread trading, you speculate on every unit the market goes up or down; in the case of the FTSE market a unit is 1 point of the index’s price movement.

Let’s say, for instance, that you choose to stake £3 for every point the FTSE moves up or down.


Spread Betting on the Market to Increase

If you were to buy the FTSE at 6827.3 and the index increased then you might see the spread move to 6880.2 – 6881.2. If this were the case, you could close your trade at 6880.2.

Profit or Loss = (final level of the market – opening level of the market) x stake per point
Profit or Loss = (6880.2 – 6827.3) x £3 per point stake
Profit or Loss = 52.9 points x £3 per point
Profit or Loss = £158.70 profit

Nevertheless, if the index had decreased to, for example, 6779.5 – 6780.5, you may want to close your position to prevent further losses. If so, you would sell back at 6779.5.

You would close your bet with the same £3 per point stake:

Profit or Loss = (final level of the market – opening level of the market) x stake per point
Profit or Loss = (6779.5 – 6827.3) x £3 per point stake
Profit or Loss = -47.8 points x £3 per point
Profit or Loss = -£143.40 loss


Spread Betting on the Market to Decrease

A key feature of placing a spread bet is that you can go short of the markets.

This market was originally priced at 6826.3 – 6827.3.

If you shorted the FTSE at 6826.3 and the index fell then you might see the quote drop to 6769.8 – 6770.8. If that happened, you might decide to close your trade for a profit at 6770.8.

Profit or Loss = (opening level of the market – final level of the market) x stake per point
Profit or Loss = (6826.3 – 6770.8) x £3 per point stake
Profit or Loss = 55.5 points x £3 per point
Profit or Loss = £166.50 profit

On the other hand, if the index had moved up to, for example, 6875.5 – 6876.5, you might decide to close your trade to restrict your losses. If that were to happen, you would buy at 6876.5.

Therefore, with the same £3 per point stake:

Profit or Loss = (opening level of the market – final level of the market) x stake per point
Profit or Loss = (6826.3 – 6876.5) x £3 per point stake
Profit or Loss = -50.2 points x £3 per point
Profit or Loss = -£150.60 loss


FTSE Rolling Daily spread betting market accurate as of 25-Jul-14.

Please note that this is a ‘Rolling Daily’ spread bet. This kind of trade doesn’t have a fixed expiry date and will just rollover to the next session. When a market rolls over you might incur a small charge or receive a small credit. For more, see rolling daily spread betting charges.



FTSE Test Accounts

The following platforms provide demo accounts. I.e. accounts that you can use to have a go at spread betting on the FTSE without taking on any risk.




FTSE Spread Betting Facts

  1. The FTSE 100 is designed to highlight the performance of the top 100 UK companies, where the companies are ranked by their market capitalisation. Note that the FTSE 250 is the next 250 UK companies, as ranked by their market capitalisation and that the FTSE 350 is the combination of the FTSE 100 and FTSE 250

  2. The FTSE 100 Index represents over 80% of UK market capitalisation

  3. The constituents that make up the FTSE 100 are updated every March, June, September and December. For example in June 2008, Alliance and Leicester, Tate and Lyle, Home Retail and Persimmon were dropped to the FTSE 250 and replaced by Drax, Invensys, Petrofac and Ferrexpo

  4. When spread betting on the FTSE 100 or 250 you trade in Pounds per point, Euros per point or Dollars per point

    If you are betting £2 per point and the FTSE 100 moves by 70 points then your profit / loss would be £2 per point x 70 points = £140.

  5. Most spread betting companies let you trade at least two different types of FTSE 100 market

    • A Daily FTSE 100 Market, aimed at Day Traders with narrow spreads

    • A Futures Market where the FTSE is settled every quarter. Spreads on quarterly futures markets are often wider. Nevertheless quarterly markets can be better value than the Daily markets if you want to hold on to your bet for the short-medium term


  6. The typical ‘in hours’ spread size of the quarterly market is 4 to 6 points. The typical in hours spread for daily markets is 1 to 2 points

  7. Spread Betting companies often let you trade outside of market hours eg the Financial Spreads FTSE 100 markets open at 7am and close at 9pm

  8. FTSE trading updates are listed on sites like cleanfinancial.com (morning and afternoon updates) and SpreadBets.org.uk (weekly review)



FTSE Spread Trading Tools

A good place to start when thinking about speculating on any market is to make sure you are trading with as few costs and as much real time information as possible.

Trade Tax Free, Trade Commission Free
  1. Make sure you trade for free. Most spread betting companies let you trade a wide range of markets such as Indices like the FTSE 100, Crude Oil, Individual Stocks and Shares etc without any commission or brokerage fees

  2. Tax Free Trading. If you spread bet on Index markets you get all the normal spread betting benefits and any profits you make from trading Indices, whether you buy or sell, are tax free*

    Free Charts, Real Time Pricing and Value for Money Spreads

  3. When trading for real make sure you have got instant access to real-time prices. In the old days prices were sometimes made available via TV Text services. Clearly the internet offers a lot more options and genuinely instant access. Access to the prices is generally available for free however you need to open a spread betting account (free) in order to access them

  4. A very useful tool that a good number of traders rely on for their analysis is the live Chart. Again you can often get these for free with companies like Financial Spreads (once you have an account). Put simply, a spread betting company will offer individual charts for each of the thousands of markets that they offer prices on. You can alter each chart by time, zoom in by the minute, add trend lines etc

  5. The FTSE prices can change rapidly and it can be difficult to compare prices between the various companies. To give you a head start websites like cleanfinancial.com let investors compare the spreads on the key markets

    User-friendly Software

  6. These days there are plenty of trading platforms to choose from and most are web based so you do not have to mess around with downloading and installing any software. There are a number of good all round products like the one at Financial Spreads that offers demo accounts, free real time charts, real time pricing, a user friendly interface, fast trading, 0% commissions, 0% brokerage fees and a range of trading orders such as stop loss orders, limit orders, one-cancels-the-other orders etc.
Without the right tools you might as well transfer your hard earned income straight to the spread betting companies‘ bottom line. With the right tools you have a much better chance of making a profit. A tax free profit*



FTSE 100 Spread Betting Protection

Like many markets world-wide, the FTSE 100 can experience significant volatility when the news favours the bulls or the bears, sometimes seeing swings on more than 100 points in a day.

There are a large number of opportunities to profit from trading Indices like the FTSE 100 but what about a little protection. With each potential profit there is a potential loss. Here are four important spread betting tips to consider.
  1. It can be difficult to predict which way one company’s shares will go let alone a whole index of 100 companies. If you are not comfortable with spread betting or trading the FTSE 100 then the safest thing to do is not to speculate. If you do not speculate you will not lose any money on your bets. Of course that means you cannot profit either

  2. If you are used to share trading but less experienced with trading indices such as the FTSE 100 or Dow 30 then you can always start with a Practice or Demo Account. The Indices prices are delayed by around 10-20 minutes but that is OK for a Demo Account

  3. Apart from the options listed above, one of the best ways of limiting your downside is to trade with small stakes. Spread betting companies like Financial Spreads will let you spread trade from as little as £1 per point. So if the FTSE goes up / down 70 points you will win or lose £70 depending upon whether you bought or sold the market. If the FTSE price moves very quickly and goes up 125 points or perhaps drops 125 points then again your losses would only be 125 points x £1 per point = £125

    Of course, spread betting allows you to increase your stakes. If you are more confident, and can afford it, you could trade £5 per point. So if the market moved 50 points you would win / lose 50 points x £5 per point = £250

  4. You can also use Stop Losses and Guaranteed Stop Losses to protect yourself against big swings. These are ways of telling the spread betting companies to close your bet if the market moves against you. Companies operate these in slightly different ways so check with your spread betting firm for details but essentially they work like this:

    You are happy to risk £80 on the FTSE. Therefore you place a spread bet, for let’s say £1 per point with a Stop Loss set at 80 points, ie so your maximum loss is £80.

    Some companies like Financial Spreads will keep your trade running if it moves your way and handily close your bet if the market moves against you. For example, if the FTSE moves a lot eg 120 points then:

    1. If it moves the way you bet by 120 points then you would win 120 points x £1 per point = £120
    2. If it moves against the way you bet by 120 points your bet would be Automatically Stopped at 80 points and you would only lose you 80 x £1 = £80


    The penalty for this security can be a slightly wider spread but the peace of mind is often worth it. Note that with markets that move quickly your Stop Loss may be activated at the next price eg 85 points rather than 80 points.
In the current environment there are clearly a lot of trading opportunities but make sure you plan for the worst and protect your funds before you aim to be the next star trader.



User Questions and Answers on the FTSE 100

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