The S&P 500 spread betting guide:
Where Can I Spread Bet on the S&P 500?
Investors can put spread bets on the S&P 500, as well as thousands of other markets, with the following spread trading firms:
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| FTSE 100 Daily |
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| FTSE 100 Futures |
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| Wall Street (Dow) Daily |
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| Wall Street (Dow) Futures |
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| DAX 30 Daily |
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| DAX 30 Futures |
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| S&P 500 Daily |
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| S&P 500 Futures |
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| Other Indices |
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Remember – spread betting is high risk, your losses can exceed your deposits.
Live S&P 500 Chart
Live S&P 500 Chart
Where Can I Get Live Spread Betting Prices and Charts for the S&P 500?
The chart above provides a useful view of the latest movements.However, if you are spread trading the S&P 500, the companies listed above offer real-time pricing as well as charts with more indicators and features.
Example chart from FinancialSpreads.com:
Spread Bet on American Shares
Spread betting lets investors speculate on a wide range of markets, including American shares, tax free* and with no brokers’ fees, or commissions.Below we have a series of detailed trading guides to help answer the most common questions about spread betting on individual American firms:
Where Can I Spread Bet on American Shares?
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| FTSE 100 Shares |
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| FTSE 250 Shares |
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| Wall Street Shares |
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| S&P 500 Shares |
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| NASDAQ 100 Shares |
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| DAX 30 Shares |
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| CAC 40 Shares |
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| Irish Shares |
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| Other Shares |
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S&P 500 Spread Betting Example
As a result, you could speculate on the S&P 500 to move above 1986.65 or move below 1986.35.
With spread trading, you speculate on every unit the market rises or falls; specifically, for the S&P 500 market a unit is 0.1 points of the index’s price movement.
Let’s say, for this example, you want to bet £2 for every 0.1 points the S&P 500 moves up or down.
Spread Betting on the Market to Rise
If you went long of the S&P 500 at 1986.65 and the index went up then the spread could change to 1994.20 – 1994.50. Assuming this was the case, you might choose to close your bet for a profit by selling at 1994.20.Profits (or Losses) = (closing level of the market – initial level of the market) x stake per 0.1 points
Profits (or Losses) = (1994.20 – 1986.65) x £2 per 0.1 points stake
Profits (or Losses) = 7.55 points x £2 per 0.1 points
Profits (or Losses) = £151.00 profit
However, if the index had moved down to 1979.70 – 1980.00, you may want to close your bet to limit your losses. If so, you would make a sell trade at 1979.70.
Therefore, with the same £2 per 0.1 points stake:
Profits (or Losses) = (closing level of the market – initial level of the market) x stake per 0.1 points
Profits (or Losses) = (1979.70 – 1986.65) x £2 per 0.1 points stake
Profits (or Losses) = -6.95 points x £2 per 0.1 points
Profits (or Losses) = -£139.00 loss
Spread Betting on the Market to Fall
One of the advantages of placing a spread bet is that investors can sell the markets, i.e. speculate on the markets to fall.The original market was priced at 1986.35 – 1986.65.
If you went short of the S&P 500 at 1986.35 and the index went down then the price could move to 1978.88 – 1979.18. In that case, you might decide to close your bet for a profit by buying at 1979.18.
Profits (or Losses) = (initial level of the market – closing level of the market) x stake per 0.1 points
Profits (or Losses) = (1986.35 – 1979.18) x £2 per 0.1 points stake
Profits (or Losses) = 7.17 points x £2 per 0.1 points
Profits (or Losses) = £143.40 profit
However, if the index were to rise to, for example, 1992.65 – 1992.95, you might decide to close your bet to restrict your losses. If that were to happen, you would buy back at 1992.95.
So, with the same £2 per 0.1 points stake:
Profits (or Losses) = (initial level of the market – closing level of the market) x stake per 0.1 points
Profits (or Losses) = (1986.35 – 1992.95) x £2 per 0.1 points stake
Profits (or Losses) = -6.60 points x £2 per 0.1 points
Profits (or Losses) = -£132.00 loss
S&P 500 Rolling Daily spread betting market correct as of 27-Jun-16.
Please note that this is a Rolling Daily market. Such trades don’t have a predetermined settlement date and automatically rolls over to the next trading day. If it does rollover, then you may receive a small credit or be charged a small overnight financing fee. To learn more see guide to rolling daily charges.
S&P 500 Test Accounts
But what if you want to try things out first? The companies detailed below also offer free practice accounts. These accounts let you see how spread trading works on the S&P 500 without risking your money.
Spread betting carries a high level of risk. You can lose more than your initial investment or stake. 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.