Spread Betting on the IBM Share Price (IBM)

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Losses can exceed deposits

Where Can I Spread Bet on IBM?

FinancialSpreads offers a wide variety of equity markets such as IBM, Rio Tinto, Wal-Mart and E.On, along with a host of other international equities.

Where Can I Access Live Prices for the IBM Market?

Financial Spreads provides investors with live pricing on numerous spread betting and CFD markets like IBM and a wide variety of other stocks, currencies, commodities and stock markets.

Where Can I Get Live IBM Charts?

When trading with Financial Spreads investors can look at real time candlestick charts for IBM and numerous other spread betting and CFD markets.

Along with the various chart types, the charting package also has an array of benefits:
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A Guide to Spread Trading on IBM

As an example, let's suppose that you go on the Financial Spreads website and the current quote is:

  IBM Rolling Cash Sell

16062.0
Buy

16071.0


Here's a guide to how the market works...

Spread Betting Market:IBM Rolling Cash
Quote (The Spread):16062.0¢ - 16071.0¢
How This Works:You can trade on the IBM Rolling Cash market moving:

  Spread Betting Above 16071.0¢, or
  Spread Betting Below 16062.0¢

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

Note: if a trade does roll over then you will normally either be debited or credited for overnight financing depending on whether you are speculating on the market to go up or down. For more details see Rolling Spread Bets.
Traded Units:Spread betting trades on the IBM market are priced in £x per cent price movement.

E.g. if IBM changes by 45.0¢ then you would win / lose 45 multiples of your stake.
Stake Size per Unit:You work out how much you would like to stake per cent, e.g. £1 per cent, £8 per cent, £10 per cent etc.
Simplified Example:If you had a stake of £5 per cent and IBM moves by 29.0¢, you would gain or lose £5 per cent x 29.0¢ = £145.


Worked Spread Trading Example - Going Long of IBM

Spread trading on the share to go up in value

You Consider Whether to Go Long or Short: IBM to go:

  Spread Betting Above 16071.0¢? or
  Spread Betting Below 16062.0¢?

Let's Say You Go Long:   Spread Betting Above 16071.0¢
You Choose Your Stake, Choosing: £1 per cent
So What Next?
  • You win £1 for every cent IBM moves above 16071.0¢
  • You will lose £1 for each cent IBM pushes below 16071.0¢
If You Are Speculating on a Market to Go Up Your Trading P&L = (Final Price - Initial Price) x stake
 
Scenario 1
IBM pushes higher and the market is revised and changes to 16231.7¢ - 16240.7¢. I.e. you'd see:   16231.7   16240.7
Time to Take a Profit? You could opt to let your bet run or close it and take a profit. In this case you opt to close your position and sell the market at 16231.7¢.
Your Trading P&L = (Final Price - Initial Price) x stake
(16231.7¢ - 16071.0¢) x £1 per cent
160.7¢ x £1 per cent
Your Trading P&L = £160.70 profit
 
Scenario 2
IBM moves lower and the spread trading market changes to 15924.8¢ - 15933.8¢, i.e.   15924.8   15933.8
Time to Limit Your Loss? You could choose to keep your trade open or close it, i.e. close your spread bet and restrict your loss. In this instance you decide to close your position and sell at 15924.8¢.
Your Trading P&L = (Final Price - Initial Price) x stake
(15924.8¢ - 16071.0¢) x £1 per cent
-146.2¢ x £1 per cent
Your Trading P&L = -£146.20 loss


Worked Spread Betting Example - Going Short of IBM

Financial spread trading on the share to move down in value

You Choose to Go Long or Short: IBM to push:

  Spread Betting Above 16071.0¢? or
  Spread Betting Below 16062.0¢?

Let's Say You Choose to Sell:   Spread Betting Below 16062.0¢
You Choose How Much to Risk, Let's Say You Choose: £1 per cent
What Happens Next?
  • You will lose £1 for each cent IBM pushes above 16062.0¢
  • You win £1 for each cent IBM falls lower than 16062.0¢
When You Sell a Market Your Trading P&L = (Initial Price - Final Price) x stake
 
Scenario 3
IBM goes lower and the spread betting market is revised to 15924.5¢ - 15933.5¢:   15924.5   15933.5
Close for a Profit? You could opt to let your spread bet run or close it, i.e. close your position for a profit. In this instance you choose to settle your trade by buying at 15933.5¢.
Your Trading P&L = (Initial Price - Final Price) x stake
(16062.0¢ - 15933.5¢) x £1 per cent
128.5¢ x £1 per cent
Your Trading P&L = £128.50 profit
 
Scenario 4
IBM goes higher and the financial spread betting market is revised and is set at 16169.9¢ - 16178.9¢, so you'd see this on Financial Spreads:   16169.9   16178.9
Restrict the Loss?At this point, you may decide to leave your trade open or close it and restrict your losses. For this example, you decide to close your bet and buy the market at 16178.9¢.
Your Trading P&L = (Initial Price - Final Price) x stake
(16062.0¢ - 16178.9¢) x £1 per cent
-116.9¢ x £1 per cent
Your Trading P&L = -£116.90 loss

Where Can I Practice Financial Spread Betting on IBM?

Financial Spreads gives you the chance to try new ideas by using a free Practice Account on markets like IBM.

The Demo Account offers a wide array of markets like FX pairs, equities, commodities and index markets.

Open a CFD Trading / Spread Betting Demo Account

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