US vs German Stock Market Differential Spread Betting Review

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Financial Spreads: Spread Betting and CFD Trading
Wall St 30 / Germany 30 Differential Spread Betting

Where Can I Spread Bet on the Wall St 30 / Germany 30 Differential?

FinancialSpreads.com offers a wide array of markets such as the Wall St 30 / Germany 30 differential in addition to individual stock market indices like the Hong Kong 50, UK 100 and France 40.

Where Can I Access Live Wall St 30 / Germany 30 Differential Prices?

Using a Financial Spreads account you can take a view on over 1,000 real time prices including markets like the Wall St 30 / Germany 30 differential and a wide range of other stock markets, forex, shares and commodities markets.

Where Can I Get Live Wall St 30 / Germany 30 Differential Charts?

When trading with a Financial Spreads account you can look at up-to-the-minute candlestick charts for the Wall St 30 / Germany 30 differential and over a thousand other markets.

Along with several chart types, the package comes with a large range of advanced features:
Sample FinancialSpreads index candlestick chart:

Stock Market Index Spread Betting Charts



A Guide to Spread Trading on the Wall St 30 / Germany 30 Differential

Let's say that you log on to the FinancialSpreads website and see something like:

  Wall St 30 / Germany 30 Differential March Sell

6024.3
Buy

6028.1


Here is a brief guide to how it works:

The Market:Wall St 30 / Germany 30 Differential March Futures
The Spread:6024.3 - 6028.1
How the Spread Works:You can spread bet on the Wall St 30 / Germany 30 market to settle:

  Spread Betting Above 6028.1, or
  Spread Betting Below 6024.3

On the expiry date for the March market, 19 March 2015. This market is a 'Futures' market and therefore your trade will automatically close on the settlement date. However, you can usually close your trade, during market hours, before the end of the contract.

Note, you don't pay any overnight financing fees on this futures contract.
Traded Units:Spread betting trades on the Wall St 30 / Germany 30 differential futures market are made in £x per point.

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

E.g. if the Wall St 30 / Germany 30 differential moves 30 points then you would lose or gain 30 multiples of your stake.
Trade Size:You work out your stake per point, e.g. £1 per point, £4 per point, £20 per point etc.
Quick Example:If you went with a stake of £3 per point and the Wall St 30 / Germany 30 differential moves by 25 points, you would win/lose £3 per point x 25 points = £75.


Worked Spread Betting Example - Buying the Wall St 30 / Germany 30 Differential

Spread betting on the market to go up in value

You Now Choose to Buy or Sell: The Wall St 30 / Germany 30 differential futures market closing:

  Spread Betting Above 6028.1? or
  Spread Betting Below 6024.3?

When the futures contract ends, 19 March 2015.

Let's Say You Want to Buy:   Spread Betting Above 6028.1
You Decide How Much to Risk, Let's Assume You Select: £2 per point
So What Next?
  • You make a profit of £2 for each point the Wall St 30 / Germany 30 differential pushes above 6028.1
  • You will make a loss of £2 for every point the Wall St 30 / Germany 30 differential decreases below 6028.1
If You Are Spread Betting on a Market to Go Up Your P/L = (Final Price - Opening Price) x stake
 
Trading Situation 1
The Wall St 30 / Germany 30 differential rises and the spread trading market is adjusted to 6100.4 - 6104.2, i.e. on Financial Spreads you would see:   6100.4   6104.2
Close for a Profit? At this point, you could decide to leave your position open, and maybe let it run to the settlement date, or close it to take your profit. In this instance you decide to close your trade by selling the market at 6100.4.
Your P/L = (Final Price - Opening Price) x stake
(6100.4 - 6028.1) x £2 per point
72.3 points x £2 per point
Your P/L = £144.60 profit
 
Trading Situation 2
The Wall St 30 / Germany 30 differential falls.
Close and Limit Your Loss? You can opt to keep your position open, and maybe let it run to the expiry date, or close it, i.e. close your trade to restrict your loss. In this example you choose to run your position until expiry. Ultimately, the futures market settles at 5961.8.
Your P/L = (Final Price - Opening Price) x stake
(5961.8 - 6028.1) x £2 per point
-66.3 points x £2 per point
Your P/L = -£132.60 loss


Worked Trading Example - Taking a Short Position on the Wall St 30 / Germany 30 Differential

Financial spread trading on the market to move lower

You Select Whether to Go Long or Short: The Wall St 30 / Germany 30 differential settling:

  Spread Betting Above 6028.1? or
  Spread Betting Below 6024.3?

On the settlement date, 19 March 2015.

Let's Say You Decide to Sell:   Spread Betting Below 6024.3
You Select Your Stake, Let's Assume You Opt For: £3 per point
What Happens Next?
  • You will make a loss of £3 for every point the Wall St 30 / Germany 30 differential moves higher than 6024.3
  • You make a profit of £3 for every point the Wall St 30 / Germany 30 differential moves lower than 6024.3
If You Sell a Market Your P/L = (Opening Price - Final Price) x stake
 
Trading Situation 3
The Wall St 30 / Germany 30 differential futures market pushes lower
Take Your Profit? You can decide to leave your trade open, and possibly let it run to the settlement date, or close it, i.e. close your spread bet to lock in your profit. In this case you choose to let the trade run until expiry. Ultimately, the market closes at 5966.5.
Your P/L = (Opening Price - Final Price) x stake
(6024.3 - 5966.5) x £3 per point
57.8 points x £3 per point
Your P/L = £173.40 profit
 
Trading Situation 4
The Wall St 30 / Germany 30 differential pushes higher and the financial spread betting market is revised and is set at 6073.5 - 6077.3. I.e. you would see:   6073.5   6077.3
Close and Restrict the Loss?You may choose to keep your trade open, letting it run to the settlement date, or close it, i.e. close your position and restrict your losses. In this example you decide to close your trade by buying at 6077.3.
Your P/L = (Opening Price - Final Price) x stake
(6024.3 - 6077.3) x £3 per point
-53.0 points x £3 per point
Your P/L = -£159.00 loss

Where Can I Practice Financial Spread Betting on the Wall St 30 / Germany 30 Differential?

FinancialSpreads provides traders with the ability to put one's trading skills to the test by using a Demo Account, test markets include the Wall St 30 / Germany 30 differential.

The Demo Account offers a wide range of markets including commodities, FX rates, stock market indices and stocks.

Open a CFD Trading / Spread Betting Demo Account


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Also see:
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