The Wheat spread betting guide:
Where Can I Spread Bet on Wheat?
You can trade on wheat, as well as plenty of other financial markets, with the following spread trading companies:
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| Gold Daily |
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| Gold Futures |
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| UK Crude Oil Daily (Brent) |
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| UK Crude Oil Future (Brent) |
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| US Crude Oil Daily (WTI) |
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| US Crude Oil Future (WTI) |
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| Other Commodities |
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Remember – spread betting is high risk, your losses can exceed your deposits.
Live Wheat Chart
Live Wheat Chart
Where Can I Get Live Spread Betting Prices and Charts for Wheat?
The chart shown above provides a useful view of the market.Nevertheless, for those investors that are trading wheat, the providers listed above offer real-time prices as well as advanced charts.
Example spread trading chart from FinancialSpreads.com:
Wheat Spread Betting Example
That means you can speculate on wheat to go above $531.25 or go below $529.75.
If you are spread betting, you speculate on every unit the market increases or decreases. Specifically, for the wheat market a unit is $1.00 of the commodity market’s price movement.
Let’s say, for this instance, you decide to stake £5 for every $1.00 wheat rises or falls.
Spread Betting on the Market to Go Up
If you bought wheat at $531.25 and the commodity market went up then the quote might become $549.84 – $551.34. If so, you could close your trade by selling at $549.84.Your P&L = (settlement value of the market – initial value of the market) x stake per $1.00
Your P&L = ($549.84 – $531.25) x £5 per $1.00 stake
Your P&L = $18.59 x £5 per $1.00
Your P&L = £92.95 profit
Of course, if the commodity market were to fall down to $515.31 – $516.81, you might want to close your bet to limit your losses. If this were the case, you’d make a sell trade at $515.31.
Therefore, with the same £5 per $1.00 stake:
Your P&L = (settlement value of the market – initial value of the market) x stake per $1.00
Your P&L = ($515.31 – $531.25) x £5 per $1.00 stake
Your P&L = -$15.94 x £5 per $1.00
Your P&L = -£79.70 loss
Spread Betting on the Market to Go Down
One of the many features of spread trading is that you can short sell the markets.When we started this example, the price was $529.75 – $531.25.
If you went short of wheat at $529.75 and the commodity market fell then you might see the quote drop to $506.00 – $507.50. In that case, you could close your bet at $507.50.
Your P&L = (initial value of the market – settlement value of the market) x stake per $1.00
Your P&L = ($529.75 – $507.50) x £5 per $1.00 stake
Your P&L = $22.25 x £5 per $1.00
Your P&L = £111.25 profit
Financial markets also move up, if the commodity market were to rise up to, as an example, $547.32 – $548.82, you might decide to close your bet to prevent further losses. If that were to happen, you would buy at $548.82.
With the same £5 per $1.00 stake:
Your P&L = (initial value of the market – settlement value of the market) x stake per $1.00
Your P&L = ($529.75 – $548.82) x £5 per $1.00 stake
Your P&L = -$19.07 x £5 per $1.00
Your P&L = -£95.35 loss
Wheat (September) spread betting prices quoted as of 13-Jul-17.
Note that this is a Futures market and so it has a particular expiry date when it is set to automatically close.
Wheat Practice Accounts
But what if you want to try things out? Well, the following companies offer practice accounts, these accounts let you see how spread betting works on wheat without risking any 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.