Quick Guide to Spread Betting on the Australia 200 Stock Market Index

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Financial Spreads: Spread Betting and CFD Trading

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Where Can I Spread Bet on the Australia 200?

FinancialSpreads.com provides investors with a large variety of indices such as the Australia 200 but also the UK 100, Germany 30 and Hong Kong stock market index.

Where Can I Access Live Australia 200 Prices?

With a Financial Spreads account clients are able to take a view on more than a thousand live prices including markets like the Australia 200 and a large variety of other stock markets, commodities, currencies and shares markets.

Where Can I Get Live Australia 200 Charts?

When using a Financial Spreads account clients have access to real-time trading charts for the Australia 200 and numerous other markets.

As well as several display styles, the charting package has a variety of options like:
Sample indices spread betting chart:

Stock Market Index Spread Betting Charts



How to Spread Bet on the Australia 200

As an example, let's say that you look at Financial Spreads and the trading platform is showing a quote of:

  Australia 200 Rolling Cash Sell

5896.0
Buy

5898.0


Here is a guide to how the market works...

Market:Australia 200 Rolling Cash
The Quote:5896 - 5898
How the Trade Works:Now you can bet on the Australia 200 Rolling Cash market to push:

  Spread Betting Higher than 5898, or
  Spread Betting Lower than 5896

This is a 'Rolling' market so it does not have a final closing date. If you decide not to close your position and the trading session ends then your trade will automatically roll over to the next session.

If a trade is rolled over then you will normally either be credited or debited for overnight financing based on whether you are betting on the market to go down or up. For more details see Rolling Spread Bets.
Trading Units:Bets on the Australia 200 market are made in £x per point.

Where a point is 1 point of the stock market index's price movement.

E.g. if the Australia 200 changes by 30 points then you would lose/win 30 times your stake.
Trade Size:You work out how much you want to stake per point, e.g. £3 per point, £5 per point, £15 per point etc.
Short Staking Exercise:As an example, if your stake is £4 per point and the Australia 200 moves by 34 points, you would lose / win £4 per point x 34 points = £136.


Worked Spread Trading Example - Going Long of the Australia 200

Spread betting on the index to move up

You Decide to Go Long or Short: The Australia 200 to go:

  Spread Betting Higher than 5898? or
  Spread Betting Lower than 5896?

Let's Say You Decide to Buy:   Spread Betting Higher than 5898
You Choose Your Stake Size, Let's Say You Choose: £1 per point
So What Happens Now?
  • You win £1 for each point the Australia 200 goes above 5898
  • You lose £1 for every point the Australia 200 goes lower than 5898
If You Are Betting on a Market to Rise Your P/L = (Settlement Price - Opening Price) x stake
 
Scenario 1
The Australia 200 pushes higher and the market adjusts and moves to 6045.5 - 6047.5, i.e.   6045.5   6047.5
Time to Take Your Profit? At this point, you could opt to let your spread bet run or close it and take a profit. In this case you opt to close your bet by selling the market at 6045.5.
Your P/L = (Settlement Price - Opening Price) x stake
(6045.5 - 5898) x £1 per point
147.5 points x £1 per point
Your P/L = £147.50 profit
 
Scenario 2
The Australia 200 moves lower and the spread betting market is moved to 5771.2 - 5773.2. I.e. you'd see:   5771.2   5773.2
Restrict Your Loss? You may choose to keep your trade open or close it and limit your loss. In this case you decide to settle your bet and sell at 5771.2.
Your P/L = (Settlement Price - Opening Price) x stake
(5771.2 - 5898) x £1 per point
-126.8 points x £1 per point
Your P/L = -£126.80 loss


Worked Spread Betting Example - Taking a Short Position on the Australia 200

Online spread betting on the index to move down in value

You Work Out Whether to Buy or Sell: The Australia 200 moving:

  Spread Betting Higher than 5898? or
  Spread Betting Lower than 5896?

You Might Want to Sell:   Spread Betting Lower than 5896
You Select Your Stake Size, Let's Say You Opt For: £2 per point
So What Happens Next?
  • You lose £2 for every point the Australia 200 increases above 5896
  • You win £2 for every point the Australia 200 decreases below 5896
If You Are Spread Betting on a Market to Decrease Your P/L = (Opening Price - Settlement Price) x stake
 
Scenario 3
The Australia 200 pushes lower and the spread trading market becomes 5805.6 - 5807.6. I.e. you would see:   5805.6   5807.6
Close for a Profit? At this point, you can choose to keep your spread bet open or close it in order to take a profit. In this instance you decide to settle your position and buy the market at 5807.6.
Your P/L = (Opening Price - Settlement Price) x stake
(5896 - 5807.6) x £2 per point
88.4 points x £2 per point
Your P/L = £176.80 profit
 
Scenario 4
The Australia 200 climbs and the financial spread betting market is revised and set at 5970.1 - 5972.1, i.e. Financial Spreads would show:   5970.1   5972.1
Restrict the Loss?You can opt to keep your bet open or close it, i.e. close your trade to limit your losses. In this case you opt to close your position by buying at 5972.1.
Your P/L = (Opening Price - Settlement Price) x stake
(5896 - 5972.1) x £2 per point
-76.1 points x £2 per point
Your P/L = -£152.20 loss


Spread Betting on Australia 200 Futures

We also offer an Australia 200 'Futures' market.

Let's say that you see our price of:

  Australia 200 March Futures Sell

5846.5
Buy

5849.5


Here's an example of how it works...

The Spread Betting MarketAustralia 200 March Futures
The Spread Trading Price5846.5 - 5849.5
How This WorksNow you can spread bet on the Australia 200 futures market to settle:

  Spread Betting Higher than 5849.5, or
  Spread Betting Lower than 5846.5

On the settlement date for this March market, 18 March 2015. This market is a 'Futures' market, therefore your bet will close automatically on the settlement date, although you can normally also close your position, during market hours, prior to the expiry date.

Note that you don't pay any daily financing fees on this futures market.
Units (Points) TradedSpread betting trades on the Australia 200 futures 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 Australia 200 moves by 50 points then you would lose or win 50 times your stake.
Stake SizeYou work out how much you would like to trade per point, e.g. £2 per point, £8 per point, £15 per point etc.
Short Staking ExerciseIf you have a stake of £4 per point and the Australia 200 moves 32 points, you would win / lose £4 per point x 32 points = £128.


Trading Example - Buying Australia 200 Futures

Financial spread betting on the stock index to move up

You Now Select Whether to Go Long or Short The Australia 200 futures market settling:

  Spread Betting Higher than 5849.5? or
  Spread Betting Lower than 5846.5?

When the contract ends, 18 March 2015.

Let's Assume You Decide to Go Long   Spread Betting Higher than 5849.5
You Choose Your Stake, Let's Say You Choose £3 per point
What Happens Next?
  • You will make £3 for every point the Australia 200 increases higher than 5849.5
  • You will make a loss of £3 for each point the Australia 200 moves lower than 5849.5
When Spread Betting on a Market to Rise Your Trading P&L = (Settlement Price - Initial Price) x stake
 
Example 1
The Australia 200 climbs and the financial spread betting market adjusts and moves to 5893.4 - 5896.4. I.e. you would see:   5893.4   5896.4
Take Your Profit? You could opt to keep your position open, and possibly let it run to the settlement date, or close it in order to lock in your profit. For this example, you decide to settle your bet and sell the market at 5893.4.
Your Trading P&L = (Settlement Price - Initial Price) x stake
(5893.4 - 5849.5) x £3 per point
43.9 points x £3 per point
Your Trading P&L = £131.70 profit
 
Example 2
The Australia 200 drops.
Restrict the Loss? You may opt to leave your trade open, and possibly let it run to the expiry date, or close it, i.e. close your trade and restrict your losses. In this example you decide to run the trade until expiry. The futures market then reaches the end of the contract and closes at 5811.5.
Your Trading P&L = (Settlement Price - Initial Price) x stake
(5811.5 - 5849.5) x £3 per point
-38.0 points x £3 per point
Your Trading P&L = -£114.00 loss


Trading Example - Selling Australia 200 Futures

Online spread betting on the stock index to decrease

You Consider Whether to Buy or Sell The Australia 200 closing:

  Spread Betting Higher than 5849.5? or
  Spread Betting Lower than 5846.5?

When the market is settled (expires), 18 March 2015.

You Might Decide to Go Short   Spread Betting Lower than 5846.5
You Select Your Stake Size, Opting for £4 per point
So What Now?
  • You will make a loss of £4 for each point the Australia 200 rises above 5846.5
  • You will make £4 for each point the Australia 200 pushes lower than 5846.5
When Going Short of a Market Your Trading P&L = (Initial Price - Settlement Price) x stake
 
Example 3
The Australia 200 futures market moves lower
Close and Take Your Profit? At this point, you can choose to leave your position open, and possibly let it run to the expiry date, or close it in order to lock in a profit. In this case you run your position until expiry. Ultimately, the futures market settles at 5811.4.
Your Trading P&L = (Initial Price - Settlement Price) x stake
(5846.5 - 5811.4) x £4 per point
35.1 points x £4 per point
Your Trading P&L = £140.40 profit
 
Example 4
The Australia 200 pushes higher and the spread betting market becomes 5873.9 - 5876.9, i.e. you would see:   5873.9   5876.9
Close and Limit Your Loss?You can decide to let your position run to the settlement date or close it and limit your loss. In this example you choose to settle your bet and buy the market at 5876.9.
Your Trading P&L = (Initial Price - Settlement Price) x stake
(5846.5 - 5876.9) x £4 per point
-30.4 points x £4 per point
Your Trading P&L = -£121.60 loss

Where Can I Practice Financial Spread Betting on the Australia 200?

FinancialSpreads offer a free Practice Account where investors are able to practice CFD trading and spread betting, analyse live charts, test new trading orders and test new trading theories etc. on markets including the Australia 200.

The Practice Account has a variety of markets like shares, indices, commodity markets and forex rates.


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+44 (0) 203 301 0483
support@financialspreads.com

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