Guide to Stock Market Index Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Spread Bet on Stock Market Indices?

FinancialSpreads offer spread betting and CFD trading on over a thousand markets including popular indices such as: We also offer further European indices like the France 40 and Euro Stocks 50 as well as other global stock market indices such as:

Where Can I Access Live Stock Market Index Prices?

FinancialSpreads offers live prices on over 1,000 spread betting and CFD markets including the indices listed above, numerous individual shares, forex and commodities markets.

Indicative Prices

Prices shown are delayed by 15 minutes, indicative only, and subject to our website terms and conditions.


Tax-Free* Index Spread Betting

Financial spread betting, including index spread betting, is currently tax-free in the UK. Note however, that tax treatment depends on the individual circumstances of each client and may change in the future.

Where Can I Practice Spread Betting on Stock Market Indices?

FinancialSpreads offer a free Demo Account where you can practice spread betting, try out trading theories, check live charts etc.

The spread betting and CFD Demo Account has a wide selection of index markets like the UK 100, Wall Street 30 and Germany 30 as well as individual equities, commodities and forex pairs.

Where Can I Get Live Index Charts?

When trading with Financial Spreads clients can access real-time candlestick charts for the UK 100 and over a thousand other markets.

Along with the various chart types, the package has a wide range of benefits that includes:
Example FinancialSpreads index chart:

Stock Market Index Spread Betting Charts



How to Spread Bet on a Stock Market Index

The following spread betting example looks at the most popular stock market index, the UK 100. For more worked trading examples also see: Looking at the UK stock market, let's assume you go to the FinancialSpreads website and see:

  UK 100 Rolling Cash Sell

6878.0
Buy

6878.8


Here's a brief guide to how it works.

The MarketUK 100 Rolling Cash
Spread6878.0 - 6878.8
This MeansYou can speculate on the UK 100 Rolling Cash market moving:

  Spread Betting Above 6878.8, or
  Spread Betting Below 6878.0

This spread betting market is a Rolling market and so there is no expiry date for this trade. If you decide not to close your trade and the trading session ends then your trade will roll over to the next trading day.

If a trade does roll over then you will either be debited or credited for overnight financing based on whether you are betting on the market to move higher or lower. To learn more see Rolling Spread Bets.
Units TradedSpread bets on the UK 100 market are priced in £x per point.

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

E.g. if the UK 100 moves 35 points then you would win/lose 35 times your stake.
Stake SizeYou work out how much you want to trade per point, e.g. £2 per point, £8 per point, £15 per point etc.
Simplified Trading ExampleIf, for example, you went with a stake of £2 per point and the UK 100 changes by 31 points, you would lose or win £2 per point x 31 points = £62.


Worked Spread Betting Example - Taking a Bullish View of the UK 100 Index

Spread Betting on the Stock Marker Index to Move Higher

You Decide to Buy or Sell The UK 100 to move:

  Spread Betting Above 6878.8? or
  Spread Betting Below 6878.0?

Let's Assume You Want to Buy   Spread Betting Above 6878.8
You Decide How Much to Risk, Selecting £2 per point
What Happens Now?
  • You make a profit of £2 for every point the UK 100 moves above 6878.8
  • You make a loss of £2 for each point the UK 100 goes lower than 6878.8
If You Are Buying a Market Your Profits/Losses = (Closing Price - Opening Price) x stake
 
Example 1
The UK 100 goes higher and the spread betting market is revised and is set at 6940.7 - 6941.5, therefore Financial Spreads would show:   6940.7   6941.5
Time to Take a Profit? You can decide to let your position run or close it, i.e. close your trade to lock in your profit. In this example you opt to settle your trade by selling at 6940.7.
Your Profits/Losses = (Closing Price - Opening Price) x stake
(6940.7 - 6878.8) x £2 per point
61.9 points x £2 per point
Your Profits/Losses = £123.80 profit
 
Example 2
The UK 100 slips and the market is adjusted and moved to 6823.8 - 6824.6. I.e. you would see:   6823.8   6824.6
Close and Restrict the Loss? You can opt to let your spread bet run or close it, i.e. close your trade and limit your losses. For this example, you opt to close your trade and sell the market at 6823.8.
Your Profits/Losses = (Closing Price - Opening Price) x stake
(6823.8 - 6878.8) x £2 per point
-55.0 points x £2 per point
Your Profits/Losses = -£110.00 loss


Spread Betting Example - Shorting the Stock Market Index

Spread Betting on the Stock Market Index to Fall

You Now Work Out Whether to Buy or Sell The UK 100 to go:

  Spread Betting Above 6878.8? or
  Spread Betting Below 6878.0?

You Might Want to Go Short   Spread Betting Below 6878.0
You Select How Much to Risk, Let's Say You Choose £3 per point
What Next?
  • You make a loss of £3 for each point the UK 100 pushes above 6878.0
  • You make a profit of £3 for each point the UK 100 pushes lower than 6878.0
If You Are Speculating on a Market to Go Down Your Profits/Losses = (Opening Price - Closing Price) x stake
 
Example 3
The UK 100 goes lower and the financial spread betting market moves to 6827.7 - 6828.5, therefore you would see this on Financial Spreads:   6827.7   6828.5
Time to Lock in a Profit? You could choose to leave your trade open or close it to lock in your profit. In this example you choose to settle your trade by buying the market at 6828.5.
Your Profits/Losses = (Opening Price - Closing Price) x stake
(6878.0 - 6828.5) x £3 per point
49.5 points x £3 per point
Your Profits/Losses = £148.50 profit
 
Example 4
The UK 100 increases and the spread trading market is revised to 6921.2 - 6922.0, i.e. on Financial Spreads you would see:   6921.2   6922.0
Time to Limit the Loss?At this point, you can decide to keep your trade open or close it, i.e. close your position and limit your loss. In this case you opt to close your position and buy at 6922.0.
Your Profits/Losses = (Opening Price - Closing Price) x stake
(6878.0 - 6922.0) x £3 per point
-44.0 points x £3 per point
Your Profits/Losses = -£132.00 loss


Summary Indices Non-Commercial and Open Interest COT Report - 10 Jan 2017


Indices Net Non-Commercial Commitments (Futures Only) Open
Interest
Change in Open Interest
Long:Short RatioRatio as of 10 Jan 2017 10 Jan 2017 3 Jan 2017 Weekly Change
Dow Jones Index 6:1 61,310 70,124 -8,814 130,480 -8,201
S&P 500 Index 1.8:1 2,140 4,628 -2,488 62,059 -4,174
Nikkei 225 Index (Yen Denom) 1:1.5 -6,069 -9,440 3,371 58,698 -509

Stock Market Index Spread Betting Guides

For quick guides to individual indices see:


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