Guide to the Germany / UK Stock Market Differential

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Financial Spreads: Spread Betting and CFD Trading
Germany 30 / UK 100 Differential Spread Betting

Where Can I Spread Bet on the Germany 30 / UK 100 Differential?

A Financial Spreads account offers investors a large range of financial markets including the Germany 30 / UK 100 differential in addition to individual indices like the Wall Street 30, Japan 225 and France 40.

Where Can I Access Live Germany 30 / UK 100 Differential Prices?

FinancialSpreads.com provides clients with real-time prices on more than 1,000 markets such as the Germany 30 / UK 100 differential and a large variety of other stock market indices, commodities, shares and forex markets.

Where Can I Get Live Germany 30 / UK 100 Differential Charts?

With a Financial Spreads account investors can make use of professional level charts for the Germany 30 / UK 100 differential and over 1,000 other markets.

As well as different display styles, the charting package has a wide array of advanced functions:
Sample indices candlestick chart:

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How to Spread Bet on the Germany 30 / UK 100 Differential

Let's imagine that you go on Financial Spreads and the current price is:

  Germany 30 / UK 100 Differential March Sell

5036.9
Buy

5040.7


Here is a brief example of how the market works:

Market:Germany 30 / UK 100 Differential March Futures
Spread Betting Price:5036.9 - 5040.7
How This Works:Now you can take a position on the Germany 30 / UK 100 differential futures market to close:

  Spread Betting Higher than 5040.7, or
  Spread Betting Lower than 5036.9

On the settlement date for the March market, 20 March 2015. This is a Futures spread trading market, therefore the trade will close automatically on the specified expiry date, although you can usually also close your position, during trading hours, before the contract expiry.

Also, there are no overnight financing fees on this futures market.
Trading Units:Spread trades on the Germany 30 / UK 100 market are made in £x per point.

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

E.g. if the Germany 30 / UK 100 differential moves 35 points then you would win / lose 35 multiples of your stake.
Stake Size:You decide how much you want to risk per point, e.g. £2 per point, £8 per point, £20 per point etc.
Short Staking Exercise:For example, if you had a stake of £4 per point and the Germany 30 / UK 100 differential changes by 33 points, you would lose or gain £4 per point x 33 points = £132.


Worked Spread Trading Example - Taking a Bullish View of the Germany 30 / UK 100 Differential

Online spread betting on the market to move up in value

You Now Work Out Whether to Go Long or Short: The Germany 30 / UK 100 differential futures market settling:

  Spread Betting Higher than 5040.7? or
  Spread Betting Lower than 5036.9?

At the end of the contract, 20 March 2015.

Let's Assume You Choose to Go Long:   Spread Betting Higher than 5040.7
You Choose Your Stake Size, Let's Say You Opt For: £4 per point
So What Happens Next?
  • You gain £4 for every point the Germany 30 / UK 100 differential goes higher than 5040.7
  • Your trade loses £4 for each point the Germany 30 / UK 100 differential moves below 5040.7
When Betting on a Market to Go Up Your P&L = (Final Price - Opening Price) x stake
 
Trading Scenario 1
The Germany 30 / UK 100 differential moves higher and the financial spread betting market becomes 5075.0 - 5078.8:   5075.0   5078.8
Time to Take Your Profit? You may opt to leave your trade open, letting it run to the settlement date, or close it to lock in a profit. For this example, you opt to settle your trade and sell at 5075.0.
Your P&L = (Final Price - Opening Price) x stake
(5075.0 - 5040.7) x £4 per point
34.3 points x £4 per point
Your P&L = £137.20 profit
 
Trading Scenario 2
The Germany 30 / UK 100 differential goes lower.
Time to Restrict Your Loss? At this point, you may opt to let your trade run to the expiry date or close it, i.e. close your position to limit your loss. In this example, you run the trade until expiry. The market settles at 5010.5.
Your P&L = (Final Price - Opening Price) x stake
(5010.5 - 5040.7) x £4 per point
-30.2 points x £4 per point
Your P&L = -£120.80 loss


Spread Trading Example - Taking a Bearish View of the Germany 30 / UK 100 Differential

Financial spread betting on the market to fall in value

You Decide to Go Long or Short: The Germany 30 / UK 100 differential to settle:

  Spread Betting Higher than 5040.7? or
  Spread Betting Lower than 5036.9?

When the contract ends, 20 March 2015.

Let's Assume You Want to Sell:   Spread Betting Lower than 5036.9
You Select Your Stake, Let's Assume You Choose: £5 per point
So What Next?
  • Your trade loses £5 for each point the Germany 30 / UK 100 differential rises above 5036.9
  • You gain £5 for each point the Germany 30 / UK 100 differential decreases below 5036.9
If You Are Betting on a Market to Go Down Your P&L = (Opening Price - Final Price) x stake
 
Trading Scenario 3
The Germany 30 / UK 100 differential slips
Take Your Profit? You could decide to keep your trade open, and possibly let it run to the expiry date, or close it, i.e. close your position to lock in your profit. In this example, you decide to run your position until the market expires. The futures market closes at 5007.1.
Your P&L = (Opening Price - Final Price) x stake
(5036.9 - 5007.1) x £5 per point
29.8 points x £5 per point
Your P&L = £149.00 profit
 
Trading Scenario 4
The Germany 30 / UK 100 differential rises and the spread trading market is revised to 5059.4 - 5063.2:   5059.4   5063.2
Restrict the Loss?You could choose to keep your trade open, letting it run to the settlement date, or close it, i.e. close your trade and limit your losses. In this example you choose to settle your bet and buy the market at 5063.2.
Your P&L = (Opening Price - Final Price) x stake
(5036.9 - 5063.2) x £5 per point
-26.3 points x £5 per point
Your P&L = -£131.50 loss

Where Can I Practice Financial Spread Betting on the Germany 30 / UK 100 Differential?

FinancialSpreads offer a free Demo Account where you can practice with new trading orders, try out spread betting, test new trading theories and check charts on markets like the Germany 30 / UK 100 differential.

The Demo Account has an array of markets like forex pairs, stocks, commodities and indices.

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