Spread Betting on Babcock Shares (BAB)

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on Babcock International?

A FinancialSpreads account offers an array of equities spread betting and contracts for difference markets such as Babcock International, Royal Mail, Wal-Mart and Siemens, plus numerous other UK, US and international equities.

Where Can I Access Live Prices for the Babcock International Market?

Using a FinancialSpreads account investors are able to take a view on more than a thousand real-time prices like Babcock International and a wide range of other equities, currencies, stock markets and commodities markets.

Where Can I Get Live Babcock International Charts?

When using a FinancialSpreads account clients can make use of up-to-the-minute charts for Babcock International and numerous other markets.

As well as multiple chart types, the package has a large range of options:
Sample share spread betting chart:

Shares Spread Betting Charts



How to Financial Spread Bet on Babcock International

For example, let's imagine that you sign into the FinancialSpreads website and the spread betting platform is showing a quote of:

  Babcock International Rolling Cash Sell

1069.3
Buy

1071.7


This is a brief guide to how the market works

Spread Trading MarketBabcock International Rolling Cash
The Spread Betting Price1069.3p - 1071.7p
This MeansNow you can speculate on the Babcock International Rolling Cash market going:

  Spread Betting Higher than 1071.7p, or
  Spread Betting Lower than 1069.3p

This spread betting market is a 'Rolling' market and so there is no expiry date. If you decide not to close your position and the session ends then your trade will roll over into the next trading session.

Note: if a trade rolls over then you will normally either be debited or credited for overnight financing depending upon whether you are speculating on the market to fall or rise. To learn more also see Rolling Spread Bets.
Traded UnitsBets on the Babcock International market are made in £x per penny price movement.

E.g. if Babcock International moves 45p then you would gain or lose 45 times your stake.
Stake Size per UnitYou decide how much you would like to risk per penny, e.g. £2 per penny, £5 per penny, £15 per penny etc.
Quick Staking ExampleIf, for example, you chose a stake of £2 per penny and Babcock International changes by 25p, you would win / lose £2 per penny x 25p = £50.


Worked Trading Example - Taking a Long Position on Babcock International

Financial spread trading on the share to go up

You Now Choose Whether to Buy or Sell Babcock International to push:

  Spread Betting Higher than 1071.7p? or
  Spread Betting Lower than 1069.3p?

You Might Want to Go Long   Spread Betting Higher than 1071.7p
You Decide How Much to Risk, Choosing £5 per penny
Now What?
  • You gain £5 for each penny Babcock International increases higher than 1071.7p
  • Your spread bet loses £5 for every penny Babcock International decreases lower than 1071.7p
When Betting on a Market to Rise Your Trading P/L = (Settlement Price - Initial Price) x stake
 
Trading Example 1
Babcock International climbs and the financial spread betting market adjusts and moves to 1100.1p - 1102.5p. I.e. you'd see:   1100.1   1102.5
Time to Lock in Your Profit? At this point, you can choose to let your position run or close it and take a profit. In this case you decide to settle your trade by selling the market at 1100.1p.
Your Trading P/L = (Settlement Price - Initial Price) x stake
(1100.1p - 1071.7p) x £5 per penny
28.4p x £5 per penny
Your Trading P/L = £142.00 profit
 
Trading Example 2
Babcock International pushes lower and the spread trading market is moved to 1039.5p - 1041.9p. I.e. the market moves to:   1039.5   1041.9
Limit the Loss? At this point, you may decide to let your position run or close it, i.e. close your position to limit your loss. For this example, you choose to close your bet and sell the market at 1039.5p.
Your Trading P/L = (Settlement Price - Initial Price) x stake
(1039.5p - 1071.7p) x £5 per penny
-32.2p x £5 per penny
Your Trading P/L = -£161.00 loss


Spread Betting Example - Taking a Bearish View of Babcock International

Spread betting on the share to fall

You Work Out Whether to Go Long or Short Babcock International moving:

  Spread Betting Higher than 1071.7p? or
  Spread Betting Lower than 1069.3p?

Let's Assume You Go Short   Spread Betting Lower than 1069.3p
You Decide Your Stake Size, Opting for £4 per penny
What Happens Now?
  • Your spread bet loses £4 for every penny Babcock International pushes higher than 1069.3p
  • You gain £4 for every penny Babcock International moves below 1069.3p
If You Are Selling a Market Your Trading P/L = (Initial Price - Settlement Price) x stake
 
Trading Example 3
Babcock International slips and the market is revised and moved to 1041.4p - 1043.8p. So you would see this on Financial Spreads:   1041.4   1043.8
Take a Profit? At this point, you may choose to let your trade run or close it to lock in your profit. In this example you decide to close your bet by buying at 1043.8p.
Your Trading P/L = (Initial Price - Settlement Price) x stake
(1069.3p - 1043.8p) x £4 per penny
25.5p x £4 per penny
Your Trading P/L = £102.00 profit
 
Trading Example 4
Babcock International pushes higher and the spread betting market changes to 1095.8p - 1098.2p. Therefore you would see:   1095.8   1098.2
Close and Restrict the Loss?You can decide to let your position run or close it in order to limit your losses. In this instance you decide to close your trade by buying the market at 1098.2p.
Your Trading P/L = (Initial Price - Settlement Price) x stake
(1069.3p - 1098.2p) x £4 per penny
-28.9p x £4 per penny
Your Trading P/L = -£115.60 loss

Where Can I Practice Financial Spread Betting on Babcock International?

FinancialSpreads offers a free Practice Account which allows investors to test trading orders, practice trading, try out new trading strategies and view the real-time charts etc. on markets including Babcock International.

The Practice Account offers access to a wide variety of markets such as shares, index markets, commodity markets and FX rates.


More on Babcock International Group plc (BAB)



A common ticker code for Babcock International is 'BAB' however 'BAB.L' and 'LON:BAB' are also used.

For more news and information on the UK firm, also see: Financial Spreads is not responsible for the content of external / third party websites.


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support@financialspreads.com

Also see:
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Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.