Index Spread Betting

Index Spread Betting

Where Can I Spread Bet on Stock Market Indices?

• UK 100
• UK 250
• Wall Street
• S&P 500
• DAX 30

• Australia 200
• Brazil Index
• China Enterprises
• Hong Kong Index
• Indian Nifty 50
• Nikkei 225
• Singapore Index

Where Can I Access Live Stock Market Index Prices?

Where Can I Get Live Stock Market Index Charts?

• Back Testing tools
• Email alerts for when a market hits a given level
• Drawing features e.g. Fibonacci timezones, fans and arcs
• A range of time periods e.g. 1 minute, 1 hour, 1 week, 1 month etc
• Chart overlays and indicators e.g. Moving Averages, Bollinger Bands, RSI, Williams %R etc

Tax-Free Index Spread Betting

Where Can I Practice Spread Betting on Stock Market Indices?

• Open a Free Spread Betting / CFD Trading Demo Account

Index Spread Betting Guides

• UK 100 Spread Betting
• Wall Street Spread Betting
• DAX 30 Spread Betting
• S&P 500 Spread Betting
• CAC 40 Spread Betting
• Nikkei 225 Spread Betting
• Australia 200 Spread Betting
• Irish Stock Market Spread Betting
• UK Mid 250 Spread Betting
• Nasdaq 100 Spread Betting
• HS Hong Kong 40 Spread Betting
• Russ 2K Spread Betting
• Spain 35 Spread Betting

How to Spread Bet on the UK 100 Index

The Market:	UK 100 Rolling Daily
Spread Betting Quote:	5808.3 - 5809.3
This Means That:	You can spread bet on the UK 100 Rolling Daily market going:   Higher than 5809.3, or   Lower than 5808.3 This market is a Rolling Daily market so it does not have a closing date. If you haven't closed your trade and the trading session ends then your position will automatically roll over into the next trading session. Note: if the trade is rolled over then you will normally either pay or receive a small fee for overnight financing based on whether you are speculating on the market to go up or down. For further information see Rolling Daily Spread Betting.
Units Traded:	Spread trades on the UK 100 market are priced in £x per point. Where a point is 1 point of the stock market index's price movement. E.g. if the UK 100 changes by 40 points then you would lose or win 40 multiples of your stake.
Trade Size:	You decide how much you want to stake per point, e.g. £1 per point, £4 per point, £10 per point etc.
Simplified Trading Exercise:	If your stake is £2 per point and the UK 100 moves by 32 points, you would win / lose £2 per point x 32 points = £64.

Spread Betting Example - Taking a Bullish View of the UK 100

You Now Work Out Whether to Buy or Sell:	The UK 100 to go:   Higher than 5809.3? or   Lower than 5808.3?
Let’s Say You Choose to Go Long:	Higher than 5809.3
You Choose Your Stake Size, Let's Say You Opt For:	£2 per point
What Next?	You make a profit of £2 for each point the UK 100 rises higher than 5809.3 You make a loss of £2 for every point the UK 100 moves lower than 5809.3
If You Are Speculating on a Market to Increase Your Profits/Losses =	(Closing Price - Opening Price) x stake
Scenario 1	The UK 100 moves higher and the spread trading market is revised and is set at 5868.0 - 5869.0, i.e. Financial Spreads would show:   5868.0   5869.0
Time to Take a Profit?	You can choose to leave your position open or close it and lock in your profit. In this example you choose to close your trade by selling the market at 5868.0.
Your Profits/Losses =	(Closing Price - Opening Price) x stake
	(5868.0 - 5809.3) x £2 per point
	58.7 points x £2 per point
Your Profits/Losses =	£117.40 profit
Scenario 2	The UK 100 decreases and the financial spread betting market becomes 5757.0 - 5758.0, therefore Financial Spreads would show:   5757.0   5758.0
Time to Restrict Your Loss?	At this point, you can opt to keep your spread bet open or close it, i.e. close your position and restrict your losses. In this example you choose to close your position and sell at 5757.0.
Your Profits/Losses =	(Closing Price - Opening Price) x stake
	(5757.0 - 5809.3) x £2 per point
	-52.3 points x £2 per point
Your Profits/Losses =	-£104.60 loss

Worked Spread Betting Example - Taking a Bearish View of the UK 100

You Now Decide Whether to Buy or Sell:	The UK 100 moving:   Higher than 5809.3? or   Lower than 5808.3?
Let's Assume You Sell:	Lower than 5808.3
You Decide Your Stake, Choosing:	£1 per point
What Happens Next?	You make a loss of £1 for every point the UK 100 pushes above 5808.3 You make a profit of £1 for every point the UK 100 goes below 5808.3
When Selling a Spread Bet Your Profits/Losses =	(Opening Price - Closing Price) x stake
Scenario 3	The UK 100 drops and the spread betting market is revised to 5716.4 - 5717.4. I.e. the market moves to:   5716.4   5717.4
Close for a Profit?	At this point, you could decide to keep your spread bet open or close it and lock in a profit. In this instance you decide to close your trade by buying at 5717.4.
Your Profits/Losses =	(Opening Price - Closing Price) x stake
	(5808.3 - 5717.4) x £1 per point
	90.9 points x £1 per point
Your Profits/Losses =	£90.90 profit
Scenario 4	The UK 100 pushes higher and the market is adjusted to 5888.3 - 5889.3:   5888.3   5889.3
Close and Restrict Your Loss?	You could decide to keep your trade open or close it, i.e. close your spread bet and limit your loss. In this case you decide to settle your bet and buy the market at 5889.3.
Your Profits/Losses =	(Opening Price - Closing Price) x stake
	(5808.3 - 5889.3) x £1 per point
	-81.0 points x £1 per point
Your Profits/Losses =	-£81.00 loss

•   UK 100 notes: example pricing taken from FinancialSpreads.com as of 2 April 2012
•   Investors could also trade on the UK 100 in euros per point and dollars per point

How to Spread Bet on the Wall Street Index

The Spread Betting Market:	Wall Street Rolling Daily
The Spread Betting Quote:	13212 - 13214
This Means:	You can bet on the Wall Street Rolling Daily market to move:   Higher than 13214, or   Lower than 13212 This market is a 'Rolling Daily' market and so there is no settlement date for this spread bet. If you decide not to close your position and the trading session ends then your position will roll over into the next trading day. Note that if a trade is rolled over then you will either receive or pay a small fee for overnight financing depending on the direction of your position. To learn more also see Rolling Daily Spread Bets.
Units Traded:	Bets on the Wall Street market are priced in £x per point. Where a point is 1 point of the index's price movement. E.g. if the Wall Street index moves by 30 points then you would win/lose 30 times your stake.
Stake (Trade Size):	You work out how much you are going to trade per point, e.g. £2 per point, £8 per point, £20 per point etc.
Short Staking Example:	If your stake was £5 per point and the Wall Street index moves 22 points, you would lose or gain £5 per point x 22 points = £110.

Worked Spread Trading Example - Buying the Wall Street Index

You Choose Whether to Go Long or Short:	The Wall Street index going:   Higher than 13214? or   Lower than 13212?
Let’s Assume You Decide to Buy:	Higher than 13214
You Choose How Much to Risk, Let's Assume You Choose:	£1 per point
Now What?	You make £1 for every point the Wall Street index rises above 13214 Your trade loses £1 for each point the Wall Street index pushes below 13214
If You Are Buying a Spread Bet Your Profits (or Losses) =	(Closing Price - Initial Price) x stake
Example 1	The Wall Street index increases and the financial spread betting market is revised and is set at 13306 - 13308. I.e. you'd see:   13306   13308
Time to Lock in Your Profit?	You may decide to let your trade run or close it to lock in your profit. For this example, you choose to close your position by selling the market at 13306.
Your Profits (or Losses) =	(Closing Price - Initial Price) x stake
	(13306 - 13214) x £1 per point
	92 points x £1 per point
Your Profits (or Losses) =	£92 profit
Example 2	The Wall Street index drops and the spread betting market is adjusted and moved to 13108 - 13110. Therefore you'd see this on Financial Spreads:   13108   13110
Close and Restrict the Loss?	You could decide to let your bet run or close it, i.e. close your spread bet and limit your loss. For this example, you opt to close your bet and sell at 13108.
Your Profits (or Losses) =	(Closing Price - Initial Price) x stake
	(13108 - 13214) x £1 per point
	-106 points x £1 per point
Your Profits (or Losses) =	-£106 loss

Trading Example - Taking a Short Position on the Wall Street Index

You Now Select Whether to Buy or Sell:	The Wall Street index moving:   Higher than 13214? or   Lower than 13212?
Let's Assume You Decide to Go Short:	Lower than 13212
You Select Your Stake, Let's Say You Choose:	£2 per point
Now What Happens?	Your trade loses £2 for each point the Wall Street index increases above 13212 You make £2 for each point the Wall Street index goes below 13212
If You Are Selling a Market Your Profits (or Losses) =	(Initial Price - Closing Price) x stake
Example 3	The Wall Street index decreases and the market is revised and moved to 13154 - 13156:   13154   13156
Time to Lock in a Profit?	At this point, you could choose to leave your trade open or close it in order to take a profit. In this example you decide to settle your position and buy the market at 13156.
Your Profits (or Losses) =	(Initial Price - Closing Price) x stake
	(13212 - 13156) x £2 per point
	56 points x £2 per point
Your Profits (or Losses) =	£112 profit
Example 4	The Wall Street index moves higher and the spread trading market moves to 13274 - 13276. Therefore you'd see:   13274   13276
Limit the Loss?	You can decide to let your spread bet run or close it, i.e. close your trade to restrict your loss. In this example you choose to settle your trade and buy at 13276.
Your Profits (or Losses) =	(Initial Price - Closing Price) x stake
	(13212 - 13276) x £2 per point
	-64 points x £2 per point
Your Profits (or Losses) =	-£128 loss

•   Wall Street market information: example pricing as per FinancialSpreads.com on 3 May 2012
•   You are also able to trade on the Wall Street index in euros/point and US dollars/point

Stock Market Information

• Financial Spreads Daily Index Commentary
• Financial Times Market News
• Wall Street Journal
• FTSE.com
• DowJones.com

Financial Spreads Account

• Spread Betting Offer
• Apply for an Account