Spread Betting on BHP Shares (BLT)

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on BHP Billiton?

Financial Spreads provides a wide array of equities CFD and spread trading markets including BHP Billiton, Prudential, Johnson & Johnson and Societe Generale, together with a host of other international stocks.

Where Can I Access Live Prices for the BHP Billiton Market?

When trading with FinancialSpreads clients are able to access more than 1,000 real time CFD trading and spread betting prices including markets like BHP Billiton and a wide range of other stocks, currencies, commodities and stock market indices.

Where Can I Get Live BHP Billiton Charts?

When trading with FinancialSpreads clients can use a professional level charting package for BHP Billiton and more than a thousand other financial spread betting and CFD markets.

Along with multiple display styles, the charting package also has a range of advanced functions that includes:
Sample Financial Spreads shares trading chart:

Shares Spread Betting Charts



A Guide to Financial Spread Betting on BHP Billiton

Let's suppose that you look at Financial Spreads and the platform is showing a quote of:

  BHP Billiton Rolling Cash Sell

1563.4
Buy

1566.1


This is a brief guide to how it works...

Spread Trading Market:BHP Billiton Rolling Cash
The Spread Trading Price:1563.4p - 1566.1p
How the Trade Works:Now you can trade on the BHP Billiton Rolling Cash market to go:

  Spread Betting Above 1566.1p, or
  Spread Betting Below 1563.4p

This market is a 'Rolling' market and so there is no final closing date. If you decide not to close your position and the session ends then your position will automatically roll over to the next session.

Note that if a trade does roll over then you will normally either receive or pay interest for overnight financing based on whether you are speculating on the market to decrease or increase. To learn more see Rolling Spread Bets.
Units (Points) Traded:Spread trades on the BHP Billiton market are made in £x per penny price movement.

E.g. if BHP Billiton moves 45p then you would lose / win 45 multiples of your stake.
Stake per Unit:You work out how much you want to trade per penny, e.g. £3 per penny, £4 per penny, £20 per penny etc.
Brief Example:If, as an example, you have a stake of £3 per penny and BHP Billiton moves by 30p, you would lose/win £3 per penny x 30p = £90.


Trading Example - Taking a Bullish View of BHP Billiton

Spread trading on the equity to move up in value

You Choose to Buy or Sell: BHP Billiton to move:

  Spread Betting Above 1566.1p? or
  Spread Betting Below 1563.4p?

Let's Say You Want to Go Long:   Spread Betting Above 1566.1p
You Select Your Stake, Let's Say You Choose: £2 per penny
So What Happens Now?
  • You make a gain of £2 for each penny BHP Billiton rises higher than 1566.1p
  • You will make a loss of £2 for every penny BHP Billiton moves below 1566.1p
When Betting on a Market to Increase Your P&L = (Closing Price - Initial Price) x stake
 
Scenario 1
BHP Billiton rises and the financial spread betting market is adjusted to 1628.7p - 1631.4p. Therefore you'd see:   1628.7   1631.4
Take Your Profit? At this point, you may decide to leave your spread bet open or close it, i.e. close your position to lock in a profit. In this case you decide to settle your trade and sell the market at 1628.7p.
Your P&L = (Closing Price - Initial Price) x stake
(1628.7p - 1566.1p) x £2 per penny
62.6p x £2 per penny
Your P&L = £125.20 profit
 
Scenario 2
BHP Billiton pushes lower and the spread trading market is adjusted and moved to 1511.3p - 1514.0p, i.e. you would see:   1511.3   1514.0
Time to Restrict the Loss? You can choose to keep your spread bet open or close it to restrict your losses. In this case you opt to close your trade and sell at 1511.3p.
Your P&L = (Closing Price - Initial Price) x stake
(1511.3p - 1566.1p) x £2 per penny
-54.8p x £2 per penny
Your P&L = -£109.60 loss


Spread Betting Example - Taking a Bearish View of BHP Billiton

Financial spread betting on the equity to go lower

You Choose to Go Long or Short: BHP Billiton to push:

  Spread Betting Above 1566.1p? or
  Spread Betting Below 1563.4p?

Let's Say You Choose to Go Short:   Spread Betting Below 1563.4p
You Decide Your Stake, Let's Assume You Select: £3 per penny
So What Next?
  • You will make a loss of £3 for every penny BHP Billiton goes higher than 1563.4p
  • You make a gain of £3 for every penny BHP Billiton decreases below 1563.4p
If You Are Speculating on a Market to Fall Your P&L = (Initial Price - Closing Price) x stake
 
Scenario 3
BHP Billiton moves lower and the spread betting market is revised and set at 1524.4p - 1527.1p, therefore you'd see this on Financial Spreads:   1524.4   1527.1
Lock in Your Profit? At this point, you may opt to keep your bet open or close it and lock in a profit. For this example, you decide to settle your bet and buy at 1527.1p.
Your P&L = (Initial Price - Closing Price) x stake
(1563.4p - 1527.1p) x £3 per penny
36.3p x £3 per penny
Your P&L = £108.90 profit
 
Scenario 4
BHP Billiton moves higher and the market adjusts and moves to 1592.4p - 1595.1p. So you'd see this on Financial Spreads:   1592.4   1595.1
Close and Limit the Loss?You could opt to leave your spread bet open or close it, i.e. close your position and limit your loss. In this case you choose to close your position by buying the market at 1595.1p.
Your P&L = (Initial Price - Closing Price) x stake
(1563.4p - 1595.1p) x £3 per penny
-31.7p x £3 per penny
Your P&L = -£95.10 loss

Where Can I Practice Financial Spread Betting on BHP Billiton?

FinancialSpreads.com offers traders the ability to try new ideas and theories by using a free Demo Account, demo markets include BHP Billiton.

The Demo Account has a large range of markets like shares, stock market indices, commodity markets and FX rates.


More on BHP Billiton plc (BLT)



A common ticker code for BHP Billiton is 'BLT' however 'BLT.L' and 'LON:BLT' 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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