Quick Guide to Spread Betting on the Euro Stocks 50 Index

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Financial Spreads: Spread Betting and CFD Trading

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Where Can I Spread Bet on the Euro Stocks 50?

When trading with Financial Spreads clients can take a view on a range of stock market indices, e.g. the Euro Stocks 50 but also the UK 100, Germany 30 and France 40.

Where Can I Access Live Euro Stocks 50 Prices?

A Financial Spreads account offers clients real-time pricing on more than a thousand CFD and financial spread betting markets including the Euro Stocks 50 and a wide range of other stock market indices, commodities, equities and currency markets.

Where Can I Get Live Euro Stocks 50 Charts?

With FinancialSpreads investors can use a real-time charting package for the Euro Stocks 50 and over 1,000 other CFD and spread trading markets.

As well as several chart types, the package has a range of features:
Sample index trading chart:

Stock Market Index Spread Betting Charts



A Guide to Spread Betting on the Euro Stocks 50

As an example, let's suppose you go on the FinancialSpreads website and the current price is:

  Euro Stocks 50 Rolling Cash Sell

3457.5
Buy

3458.5


This is an example of how it works:

The Spread Betting Market:Euro Stocks 50 Rolling Cash
The Spread Betting Quote:3457.5 - 3458.5
This Means That:You can trade on the Euro Stocks 50 Rolling Cash market to push:

  Spread Betting Higher than 3458.5, or
  Spread Betting Lower than 3457.5

This is a Rolling spread betting market which means that there is no expiry date for this spread bet. If you don't close your trade and the session ends then your trade will automatically roll over to the next trading session.

Note: if the trade is rolled over then you will either have to pay or receive interest for overnight financing depending on whether you are speculating on the market to fall or rise. To learn more see Rolling Spread Betting.
Traded Units:Financial spread bets on the Euro Stocks 50 market are priced in £x per point.

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

E.g. if the Euro Stocks 50 changes by 45 points then you would lose or gain 45 multiples of your stake.
Trade Size:You choose how much you would like to risk per point, e.g. £3 per point, £8 per point, £10 per point etc.
Quick Staking Example:As an example, if you decided on a stake of £3 per point and the Euro Stocks 50 moves by 33 points, you would gain or lose £3 per point x 33 points = £99.


Worked Example - Buying the Euro Stocks 50

Spread trading on the stock index to move up

You Consider Whether to Buy or Sell: The Euro Stocks 50 to move:

  Spread Betting Higher than 3458.5? or
  Spread Betting Lower than 3457.5?

Let's Assume You Go Long:   Spread Betting Higher than 3458.5
You Choose Your Stake, Selecting: £3 per point
What Now?
  • You make a profit of £3 for every point the Euro Stocks 50 goes higher than 3458.5
  • You make a loss of £3 for each point the Euro Stocks 50 decreases below 3458.5
If You Buy a Market Your P&L = (Closing Price - Initial Price) x stake
 
Example 1
The Euro Stocks 50 climbs and the spread betting market becomes 3489.6 - 3490.6, so you would see this on Financial Spreads:   3489.6   3490.6
Lock in a Profit? At this point, you may choose to leave your position open or close it, i.e. close your spread bet for a profit. In this example you decide to settle your trade and sell the market at 3489.6.
Your P&L = (Closing Price - Initial Price) x stake
(3489.6 - 3458.5) x £3 per point
31.1 points x £3 per point
Your P&L = £93.30 profit
 
Example 2
The Euro Stocks 50 decreases and the market is revised and moved to 3430.8 - 3431.8:   3430.8   3431.8
Limit the Loss? You could decide to leave your trade open or close it, i.e. close your trade and limit your losses. In this instance you decide to close your position by selling the market at 3430.8.
Your P&L = (Closing Price - Initial Price) x stake
(3430.8 - 3458.5) x £3 per point
-27.7 points x £3 per point
Your P&L = -£83.10 loss


Worked Spread Betting Example - Selling the Euro Stocks 50

Financial spread trading on the stock index to decrease

You Now Work Out Whether to Buy or Sell: The Euro Stocks 50 to go:

  Spread Betting Higher than 3458.5? or
  Spread Betting Lower than 3457.5?

Let's Say You Go Short:   Spread Betting Lower than 3457.5
You Select Your Stake Size, Let's Assume You Choose: £4 per point
So What Now?
  • You make a loss of £4 for each point the Euro Stocks 50 moves higher than 3457.5
  • You make a profit of £4 for each point the Euro Stocks 50 moves below 3457.5
If You Are Spread Betting on a Market to Go Down Your P&L = (Initial Price - Closing Price) x stake
 
Example 3
The Euro Stocks 50 drops and the financial spread betting market is revised and changes to 3422.3 - 3423.3. I.e. you'd see:   3422.3   3423.3
Lock in Your Profit? You can decide to let your trade run or close it and take your profit. For this example, you decide to close your trade and buy at 3423.3.
Your P&L = (Initial Price - Closing Price) x stake
(3457.5 - 3423.3) x £4 per point
34.2 points x £4 per point
Your P&L = £136.80 profit
 
Example 4
The Euro Stocks 50 goes higher and the spread trading market is revised to 3486.9 - 3487.9. Therefore you would see this on Financial Spreads:   3486.9   3487.9
Time to Limit Your Loss?At this point, you can choose to leave your spread bet open or close it, i.e. close your trade and restrict your losses. In this instance you opt to close your trade by buying the market at 3487.9.
Your P&L = (Initial Price - Closing Price) x stake
(3457.5 - 3487.9) x £4 per point
-30.4 points x £4 per point
Your P&L = -£121.60 loss

Where Can I Practice Financial Spread Betting on the Euro Stocks 50?

FinancialSpreads.com offers you the chance to try out new trading theories by using a free Practice Account, markets include the Euro Stocks 50.

The Practice Account offers an array of markets like FX, equities, commodities and index markets.

Spread Betting on Shares in the Euro Stocks 50

German Shares


French Shares

Spanish Shares

Dutch Shares



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