Spread Betting on the Alcoa Share Price (AA)

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on Alcoa?

A Financial Spreads account offers a large range of shares spread betting and CFD markets such as Alcoa, Centrica, Wal-Mart and Telefonica, along with a selection of other UK, American and global shares.

Where Can I Access Live Prices for the Alcoa Market?

When trading with a Financial Spreads account clients can take a view on more than 1,000 live CFD trading and spread betting prices such as Alcoa and a wide array of other shares, commodities, stock market indices and forex markets.

Where Can I Get Live Alcoa Charts?

With Financial Spreads clients can make use of live candlestick charts for Alcoa and numerous other markets.

Along with several display styles, the charting package comes with a range of features that includes:
Sample share spread trading chart:

Shares Spread Betting Charts



A Guide to Spread Trading on Alcoa

For example, let's assume you sign into the FinancialSpreads site and the trading platform is showing a quote of:

  Alcoa Rolling Cash Sell

1575.0
Buy

1580.0


Here is a guide to how it works...

Spread Trading Market:Alcoa Rolling Cash
Spread Trading Price:1575.0¢ - 1580.0¢
How the Market Works:Now you can speculate on the Alcoa Rolling Cash market going:

  Spread Betting Above 1580.0¢, or
  Spread Betting Below 1575.0¢

This is a Rolling spread bet meaning that it does not have a closing date. If you decide not to close your trade and the session ends then your position will automatically roll over into the next trading session.

If a trade rolls over then you will either have to pay or receive a small fee for overnight financing depending on whether you are betting on the market to decrease or increase. For more information also see Rolling Spread Betting.
Units (Points) Traded:Spread betting trades on the Alcoa market are made in £x per cent price movement.

E.g. if Alcoa changes by 50.0¢ then you would win/lose 50 multiples of your stake.
Trade Size:You decide how much you would like to trade per cent, e.g. £2 per cent, £5 per cent, £20 per cent etc.
Brief Staking Example:If you have a stake of £3 per cent and Alcoa moves 30.0¢, you would win or lose £3 per cent x 30.0¢ = £90.


Worked Example - Taking a Long Position on Alcoa

Spread trading on the equity to go up in value

You Work Out Whether to Go Long or Short: Alcoa to push:

  Spread Betting Above 1580.0¢? or
  Spread Betting Below 1575.0¢?

Let's Assume You Decide to Go Long:   Spread Betting Above 1580.0¢
You Decide How Much to Risk, Choosing: £3 per cent
Now What?
  • You will make £3 for each cent Alcoa pushes higher than 1580.0¢
  • You will make a loss of £3 for every cent Alcoa decreases below 1580.0¢
When Spread Betting on a Market to Increase Your P/L = (Closing Price - Initial Price) x stake
 
Situation 1
Alcoa increases and the spread betting market is revised to 1633.7¢ - 1638.7¢. I.e. you would see:   1633.7   1638.7
Time to Take Your Profit? At this point, you may opt to leave your trade open or close it, i.e. close your position to lock in a profit. In this example you choose to settle your position and sell at 1633.7¢.
Your P/L = (Closing Price - Initial Price) x stake
(1633.7¢ - 1580.0¢) x £3 per cent
53.7¢ x £3 per cent
Your P/L = £161.10 profit
 
Situation 2
Alcoa decreases and the financial spread betting market is revised and moved to 1532.6¢ - 1537.6¢. Therefore Financial Spreads would show:   1532.6   1537.6
Time to Restrict Your Loss? At this point, you can decide to keep your spread bet open or close it, i.e. close your spread bet and limit your loss. For this example, you opt to close your trade by selling at 1532.6¢.
Your P/L = (Closing Price - Initial Price) x stake
(1532.6¢ - 1580.0¢) x £3 per cent
-47.4¢ x £3 per cent
Your P/L = -£142.20 loss


Spread Trading Example - Going Short of Alcoa

Online spread betting on the equity to fall

You Now Consider Whether to Go Long or Short: Alcoa moving:

  Spread Betting Above 1580.0¢? or
  Spread Betting Below 1575.0¢?

Let's Assume You Sell:   Spread Betting Below 1575.0¢
You Choose How Much to Risk, Let's Say You Opt For: £2 per cent
So What Next?
  • You will make a loss of £2 for every cent Alcoa goes higher than 1575.0¢
  • You will make £2 for every cent Alcoa pushes below 1575.0¢
When Spread Betting on a Market to Decrease Your P/L = (Initial Price - Closing Price) x stake
 
Situation 3
Alcoa goes lower and the spread trading market is adjusted and moved to 1495.0¢ - 1500.0¢, i.e.   1495.0   1500.0
Lock in a Profit? You could decide to let your position run or close it in order to lock in your profit. In this instance you choose to close your position by buying the market at 1500.0¢.
Your P/L = (Initial Price - Closing Price) x stake
(1575.0¢ - 1500.0¢) x £2 per cent
75.0¢ x £2 per cent
Your P/L = £150.00 profit
 
Situation 4
Alcoa climbs and the market becomes 1636.2¢ - 1641.2¢, therefore Financial Spreads would show:   1636.2   1641.2
Time to Limit the Loss?You may decide to let your bet run or close it, i.e. close your spread bet to restrict your loss. For this example, you decide to settle your position and buy at 1641.2¢.
Your P/L = (Initial Price - Closing Price) x stake
(1575.0¢ - 1641.2¢) x £2 per cent
-66.2¢ x £2 per cent
Your P/L = -£132.40 loss

Where Can I Practice Financial Spread Betting on Alcoa?

Financial Spreads provide a free Demo Account where investors are able to practice trading, try out new trading strategies, practice with new trading orders and analyse candlestick charts on markets like Alcoa.

The Practice Account has a range of markets like currencies, stocks and shares, commodity markets and index markets.


More on Alcoa Inc. (AA)



The ticker code for Alcoa is 'AA', for more news and data on the American firm, also see: Financial Spreads is not responsible for the content of external / third party websites.


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