Spread Betting on the BMW Share Price

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on BMW?

A FinancialSpreads account provides investors with a large variety of stocks like BMW, Glencore, General Electric and Daimler, plus a host of other UK, American and international shares.

Where Can I Access Live Prices for the BMW Market?

A Financial Spreads account offers investors live prices on numerous CFD and financial spread betting markets such as BMW and a large variety of other equities, FX, stock markets and commodities prices.

Where Can I Get Live BMW Charts?

Using a Financial Spreads account clients can use a real time charting package for BMW and over 1,000 other financial spread betting and CFD markets.

As well as several chart types, the charting package also has an array of benefits. These include:
Sample shares spread betting chart:

Shares Spread Betting Charts



How to Financial Spread Bet on BMW

Let's imagine you log on to the Financial Spreads site and see the current quote is:

  BMW Rolling Cash Sell

10759.2
Buy

10785.8


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

Spread Trading MarketBMW Rolling Cash
Price (Spread)10759.2c - 10785.8c
How the Market WorksNow you can speculate on the BMW Rolling Cash market moving:

  Spread Betting Above 10785.8c, or
  Spread Betting Below 10759.2c

This is a Rolling market and so there is no final closing date for this spread bet. If you haven't closed your position and the session ends then your trade will automatically roll over into the next trading day.

Note that if a trade is rolled over then you will normally either pay or receive interest for overnight financing based upon whether you are betting on the market to decrease or increase. For more details also see Rolling Spread Bets.
Trading UnitsFinancial spread bets on the BMW market are priced in £x per cent price movement.

E.g. if BMW changes by 50.0c then you would gain or lose 50 times your stake.
Stake SizeYou work out your stake per cent, e.g. £3 per cent, £5 per cent, £15 per cent etc.
Short Staking ExampleFor example, if you decided on a stake of £4 per cent and BMW moves 35.0c, you would win or lose £4 per cent x 35.0c = £140.


Worked Trading Example - Buying BMW

Online spread betting on the European equity to increase

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

  Spread Betting Above 10785.8c? or
  Spread Betting Below 10759.2c?

Let's Assume You Go Long   Spread Betting Above 10785.8c
You Select Your Stake, Let's Say You Opt For £2 per cent
Now What Happens?
  • You gain £2 for each cent BMW increases higher than 10785.8c
  • Your spread bet loses £2 for every cent BMW falls below 10785.8c
When Betting on a Market to Rise Your Profits/Losses = (Settlement Price - Initial Price) x stake
 
Trading Example 1
BMW goes higher and the market is revised and changes to 10882.9c - 10909.5c, so you'd see this on Financial Spreads:   10882.9   10909.5
Close and Take a Profit? At this point, you may decide to leave your position open or close it in order to take your profit. In this instance you decide to close your trade by selling the market at 10882.9c.
Your Profits/Losses = (Settlement Price - Initial Price) x stake
(10882.9c - 10785.8c) x £2 per cent
97.1c x £2 per cent
Your Profits/Losses = £194.20 profit
 
Trading Example 2
BMW drops and the spread trading market is moved to 10694.1c - 10720.7c. Therefore you would see:   10694.1   10720.7
Time to Restrict Your Loss? You may choose to keep your trade open or close it to restrict your loss. For this example, you opt to close your position and sell the market at 10694.1c.
Your Profits/Losses = (Settlement Price - Initial Price) x stake
(10694.1c - 10785.8c) x £2 per cent
-91.7c x £2 per cent
Your Profits/Losses = -£183.40 loss


Worked Example - Going Short of BMW

Financial spread betting on the European equity to decrease

You Now Decide Whether to Buy or Sell BMW to move:

  Spread Betting Above 10785.8c? or
  Spread Betting Below 10759.2c?

You Might Want to Sell   Spread Betting Below 10759.2c
You Decide Your Stake Size, Let's Say You Select £1 per cent
So What Happens Next?
  • Your spread bet loses £1 for every cent BMW pushes higher than 10759.2c
  • You gain £1 for every cent BMW moves below 10759.2c
When You Sell a Spread Bet Your Profits/Losses = (Initial Price - Settlement Price) x stake
 
Trading Example 3
BMW decreases and the financial spread betting market is revised to 10572.8c - 10599.4c. Therefore you would see this on Financial Spreads:   10572.8   10599.4
Lock in a Profit? At this point, you can choose to keep your trade open or close it, i.e. close your spread bet to lock in a profit. In this instance you choose to close your trade and buy at 10599.4c.
Your Profits/Losses = (Initial Price - Settlement Price) x stake
(10759.2c - 10599.4c) x £1 per cent
159.8c x £1 per cent
Your Profits/Losses = £159.80 profit
 
Trading Example 4
BMW pushes higher and the spread betting market adjusts and moves to 10883.5c - 10910.1c. I.e. the market moves to:   10883.5   10910.1
Time to Limit Your Loss?You can opt to let your spread bet run or close it, i.e. close your spread bet and restrict your losses. In this case you opt to close your trade by buying at 10910.1c.
Your Profits/Losses = (Initial Price - Settlement Price) x stake
(10759.2c - 10910.1c) x £1 per cent
-150.9c x £1 per cent
Your Profits/Losses = -£150.90 loss

Where Can I Practice Financial Spread Betting on BMW?

FinancialSpreads provides traders with the ability to try out new trading theories by using a Demo Account on markets such as BMW.

The Financial Spreads Demo Account doesn't just offer the above; investors can gain experience with an array of commodity markets, forex, stock market indices and shares.

Open a Free Spread Betting and CFDs Demo Account



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