Bank of America Spread Betting

Where Can I Spread Bet on Bank of America?

Where Can I Access Live Prices for the Bank of America Market?

Where Can I Get Live Bank of America Charts?

• Back Testing tools
• Automatic alerts when a market reaches a certain trigger level
• A variety of intervals - 15 minutes, 1 hour, 1 day etc.
• Drawing options and tools - Trendlines, Fibonacci Fans, Arcs and Time Zones
• Technical indicators and overlays - Exponential Moving Average, Bollinger Bands, TSI etc.

How to Spread Bet on Bank of America

Spread Betting Market	Bank of America Rolling Daily
Spread	$9.55 - $9.58
How the Market Works	You can spread bet on the Bank of America Rolling Daily market going:   Above $9.58, or   Below $9.55 This is a Rolling Daily spread bet and so there is no expiry date for this trade. If you haven't closed your trade and the trading session ends then your trade will roll over to the next trading day. Note: if a trade is rolled over then you will either have to pay or receive interest for overnight financing based on whether you are speculating on the market to move lower or higher. For more information also see Rolling Spread Bets.
Units (Points) Traded	Spread trades on the Bank of America market are priced in £x per cent price movement. E.g. if Bank of America moves by 40¢ ($0.40) then you would lose/win 40 times your stake.
Stake Size per Unit	You work out how much you are going to risk per cent, e.g. £2 per cent, £4 per cent, £20 per cent etc.
Brief Staking Exercise	As an example, if you chose a stake of £3 per cent and Bank of America changes by $0.29 (29¢), you would gain or lose £3 per cent x 29¢ = £87.

Worked Trading Example - Taking a Long Position on Bank of America

You Now Decide to Buy or Sell	Bank of America to push:   Above $9.58? or   Below $9.55?
Let’s Say You Buy	Above $9.58
You Decide Your Stake, Selecting	£5 per cent
Now What?	You make £5 for each cent ($0.01) Bank of America increases above $9.58 You will make a loss of £5 for every cent ($0.01) Bank of America moves below $9.58
When Buying a Spread Bet Your Profits/Losses =	(Closing Price - Opening Price) x stake
Situation 1	Bank of America goes higher and the spread betting market is revised and set at $9.82 - $9.85, so you'd see:   9.82   9.85
Lock in a Profit?	You can decide to keep your position open or close it, i.e. close your trade to lock in your profit. In this example you opt to settle your position and sell the market at $9.82.
Your Profits/Losses =	(Closing Price - Opening Price) x stake
	($9.82 - $9.58) x £5 per cent
	$0.24 x £5 per cent
	24¢ x £5 per cent
Your Profits/Losses =	£120 profit
Situation 2	Bank of America moves lower and the spread trading market becomes $9.37 - $9.40. I.e. the market moves to:   9.37   9.40
Close and Restrict the Loss?	You may opt to let your spread bet run or close it, i.e. close your trade and limit your loss. In this instance you decide to close your bet by selling at $9.37.
Your Profits/Losses =	(Closing Price - Opening Price) x stake
	($9.37 - $9.58) x £5 per cent
	-$0.21 x £5 per cent
	-21¢ x £5 per cent
Your Profits/Losses =	-£105 loss

Worked Spread Betting Example - Taking a Bearish View of Bank of America

You Choose to Buy or Sell	Bank of America moving:   Above $9.58? or   Below $9.55?
Let's Assume You Choose to Sell	Below $9.55
You Select Your Stake Size, Let's Say You Select	£3 per cent
So What Happens Next?	You will make a loss of £3 for every cent ($0.01) Bank of America moves higher than $9.55 You make £3 for every cent ($0.01) Bank of America goes lower than $9.55
When You Sell a Spread Bet Your Profits/Losses =	(Opening Price - Closing Price) x stake
Situation 3	Bank of America pushes lower and the financial spread betting market is revised and moved to $9.09 - $9.12, therefore you'd see:   9.09   9.12
Take a Profit?	You can choose to keep your trade open or close it in order to lock in a profit. In this case you opt to close your bet and buy at $9.12.
Your Profits/Losses =	(Opening Price - Closing Price) x stake
	($9.55 - $9.12) x £3 per cent
	$0.43 x £3 per cent
	43¢ x £3 per cent
Your Profits/Losses =	£129 profit
Situation 4	Bank of America moves higher and the market adjusts and moves to $9.89 - $9.92:   9.89   9.92
Limit the Loss?	At this point, you can choose to keep your trade open or close it, i.e. close your spread bet and limit your loss. In this case you opt to settle your bet and buy the market at $9.92.
Your Profits/Losses =	(Opening Price - Closing Price) x stake
	($9.55 - $9.92) x £3 per cent
	-$0.37 x £3 per cent
	-37¢ x £3 per cent
Your Profits/Losses =	-£111 loss

•   Bank of America market information: example pricing as per FinancialSpreads on 2 April 2012
•   Investors are also able to speculate on Bank of America in euros per cent and dollars per cent

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