Spread Betting on the Microsoft Share Price (MSFT)

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Losses can exceed deposits

Where Can I Spread Bet on Microsoft?

A FinancialSpreads account provides clients with a large range of equities CFD and spread trading markets such as Microsoft, Barclays, IBM and Allianz, along with a host of other UK, US and global equities.

Where Can I Access Live Prices for the Microsoft Market?

FinancialSpreads.com provides clients with live pricing on numerous CFD and spread trading markets such as Microsoft and a variety of other stocks, commodities, currencies and indices markets.

Where Can I Get Live Microsoft Charts?

When trading with a FinancialSpreads account clients have access to real-time trading charts for Microsoft and more than 1,000 other markets.

As well as different chart types, the package comes with a large variety of options:
Sample share spread betting chart:

Shares Spread Betting Charts



A Guide to Spread Trading on Microsoft

As an example, let's imagine you go on FinancialSpreads.com and the live price is:

  Microsoft Rolling Cash Sell

4329.0
Buy

4334.0


Here's a brief example of how the market works:

The Spread Betting Market:Microsoft Rolling Cash
The Spread:4329.0¢ - 4334.0¢
This Means That:Now you can bet on the Microsoft Rolling Cash market to go:

  Spread Betting Higher than 4334.0¢, or
  Spread Betting Lower than 4329.0¢

This is a 'Rolling' market which means that there is no final closing date. If you haven't closed your position and the session ends then your trade will automatically roll over to the next trading day.

If the trade is rolled over then you will normally either be charged or receive interest for overnight financing depending upon whether you are betting on the market to move higher or lower. To learn more also see Rolling Spread Bets.
Points (Units) Traded:Bets on the Microsoft market are made in £x per cent price movement.

E.g. if Microsoft moves by 30.0¢ then you would win or lose 30 multiples of your stake.
Stake Size per Unit:You choose your stake per cent, e.g. £2 per cent, £5 per cent, £20 per cent etc.
Quick Staking Example:If, for example, your stake was £3 per cent and Microsoft changes by 20.0¢, you would win/lose £3 per cent x 20.0¢ = £60.


Trading Example - Taking a Bullish View of Microsoft

Spread trading on the share to rise

You Now Consider Whether to Go Long or Short: Microsoft moving:

  Spread Betting Higher than 4334.0¢? or
  Spread Betting Lower than 4329.0¢?

You Might Decide to Buy:   Spread Betting Higher than 4334.0¢
You Choose Your Stake, Let's Assume You Select: £2 per cent
What Next?
  • You will win £2 for every cent Microsoft rises higher than 4334.0¢
  • Your trade loses £2 for each cent Microsoft goes lower than 4334.0¢
When You Buy a Spread Bet Your P&L = (Settlement Price - Opening Price) x stake
 
Trading Example 1
Microsoft climbs and the spread trading market is revised and moved to 4399.0¢ - 4404.0¢. So you'd see this on Financial Spreads:   4399.0   4404.0
Time to Lock in a Profit? At this point, you may opt to leave your position open or close it for a profit. In this case you decide to close your trade by selling the market at 4399.0¢.
Your P&L = (Settlement Price - Opening Price) x stake
(4399.0¢ - 4334.0¢) x £2 per cent
65.0¢ x £2 per cent
Your P&L = £130.00 profit
 
Trading Example 2
Microsoft goes lower and the market adjusts and moves to 4277.7¢ - 4282.7¢, i.e.   4277.7   4282.7
Restrict the Loss? At this point, you can choose to let your trade run or close it to restrict your loss. In this instance you decide to settle your bet and sell the market at 4277.7¢.
Your P&L = (Settlement Price - Opening Price) x stake
(4277.7¢ - 4334.0¢) x £2 per cent
-56.3¢ x £2 per cent
Your P&L = -£112.60 loss


Worked Trading Example - Going Short of Microsoft

Financial spread betting on the share to go down in value

You Decide Whether to Buy or Sell: Microsoft to move:

  Spread Betting Higher than 4334.0¢? or
  Spread Betting Lower than 4329.0¢?

Let's Say You Choose to Sell:   Spread Betting Lower than 4329.0¢
You Decide How Much to Risk, Choosing: £3 per cent
What Happens Now?
  • Your trade loses £3 for each cent Microsoft moves above 4329.0¢
  • You will win £3 for each cent Microsoft pushes below 4329.0¢
If You Are Spread Betting on a Market to Fall Your P&L = (Opening Price - Settlement Price) x stake
 
Trading Example 3
Microsoft drops and the spread betting market is revised and changes to 4268.8¢ - 4273.8¢, i.e. Financial Spreads would show:   4268.8   4273.8
Time to Lock in Your Profit? At this point, you may choose to let your spread bet run or close it in order to take your profit. For this example, you decide to close your trade by buying at 4273.8¢.
Your P&L = (Opening Price - Settlement Price) x stake
(4329.0¢ - 4273.8¢) x £3 per cent
55.2¢ x £3 per cent
Your P&L = £165.60 profit
 
Trading Example 4
Microsoft pushes higher and the financial spread betting market is adjusted and moved to 4371.8¢ - 4376.8¢, therefore you would see:   4371.8   4376.8
Close and Restrict the Loss?You could decide to let your position run or close it, i.e. close your trade and limit your losses. In this instance you choose to close your trade and buy at 4376.8¢.
Your P&L = (Opening Price - Settlement Price) x stake
(4329.0¢ - 4376.8¢) x £3 per cent
-47.8¢ x £3 per cent
Your P&L = -£143.40 loss

Where Can I Practice Financial Spread Betting on Microsoft?

Financial Spreads provides a free Practice Account where investors are able to test new trading orders, view the real time charts, try out new trading theories and try out CFD trading and spread betting on markets including Microsoft.

The Practice Account is not limited to one market; investors can gain experience across a variety of forex, stocks, commodities and stock market indices.

Open a Spread Betting / CFD Trading Demo Account

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