Spread Betting on Pearson Shares (PSON)

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Financial Spreads: Spread Betting and CFD Trading

Where Can I Spread Bet on Pearson?

FinancialSpreads provides clients with an array of shares spread betting and CFD markets like Pearson, Centrica, AT&T and BNP Paribas, along with numerous other UK, American and global shares.

Where Can I Access Live Prices for the Pearson Market?

A FinancialSpreads account provides investors with real time pricing on numerous CFD and spread trading markets like Pearson and a large variety of other equities, currencies, stock markets and commodities markets.

Where Can I Get Live Pearson Charts?

When using a FinancialSpreads account investors have access to a real time charting package for Pearson and more than 1,000 other markets.

Along with different display styles, the charting package comes with a wide variety of advanced functions like:
Sample share spread trading chart:

Shares Spread Betting Charts



How to Spread Bet on Pearson

As an example, let's assume you sign into the FinancialSpreads website and see the current price is:

  Pearson Rolling Cash Sell

1358.0
Buy

1361.0


This is an example of how the market works:

Market:Pearson Rolling Cash
Spread Trading Price:1358.0p - 1361.0p
How the Trade Works:You can bet on the Pearson Rolling Cash market to push:

  Spread Betting Above 1361.0p, or
  Spread Betting Below 1358.0p

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

If the trade is rolled over then you will normally either receive or be charged interest for overnight financing depending upon whether you are speculating on the market to move higher or lower. For additional information see Rolling Spread Betting.
Units Traded:Bets on the Pearson market are made in £x per penny price movement.

E.g. if Pearson moves by 30p then you would lose / win 30 multiples of your stake.
Stake per Unit:You decide how much you would like to trade per penny, e.g. £2 per penny, £8 per penny, £10 per penny etc.
Simplified Example:With that in mind, if you have a stake of £4 per penny and Pearson changes by 29p, you would win/lose £4 per penny x 29p = £116.


Worked Trading Example - Taking a Bullish View of Pearson

Spread trading on the UK equity to rise

You Now Work Out Whether to Go Long or Short: Pearson moving:

  Spread Betting Above 1361.0p? or
  Spread Betting Below 1358.0p?

Let's Say You Want to Buy:   Spread Betting Above 1361.0p
You Choose Your Stake, Let's Assume You Opt For: £3 per penny
Now What?
  • You make a gain of £3 for every penny Pearson moves higher than 1361.0p
  • Your trade loses £3 for each penny Pearson decreases below 1361.0p
If You Are Going Long of a Market Your P/L = (Closing Price - Opening Price) x stake
 
Trading Scenario 1
Pearson rises and the financial spread betting market adjusts and moves to 1405.2p - 1408.2p. Therefore you'd see this on Financial Spreads:   1405.2   1408.2
Take Your Profit? You could choose to leave your spread bet open or close it in order to take a profit. For this example, you opt to settle your trade by selling the market at 1405.2p.
Your P/L = (Closing Price - Opening Price) x stake
(1405.2p - 1361.0p) x £3 per penny
44.2p x £3 per penny
Your P/L = £132.60 profit
 
Trading Scenario 2
Pearson moves lower and the spread betting market is revised and is set at 1323.6p - 1326.6p, i.e. the market moves to:   1323.6   1326.6
Time to Restrict the Loss? At this point, you can decide to leave your bet open or close it in order to limit your loss. For this example, you choose to settle your bet and sell the market at 1323.6p.
Your P/L = (Closing Price - Opening Price) x stake
(1323.6p - 1361.0p) x £3 per penny
-37.4p x £3 per penny
Your P/L = -£112.20 loss


Worked Spread Betting Example - Taking a Bearish View of Pearson

Financial spread trading on the UK equity to go down

You Now Consider Whether to Go Long or Short: Pearson going:

  Spread Betting Above 1361.0p? or
  Spread Betting Below 1358.0p?

Let's Assume You Decide to Sell:   Spread Betting Below 1358.0p
You Decide Your Stake, Let's Say You Select: £4 per penny
Now What Happens?
  • Your trade loses £4 for each penny Pearson goes above 1358.0p
  • You make a gain of £4 for each penny Pearson goes below 1358.0p
If You Are Going Short of a Market Your P/L = (Opening Price - Closing Price) x stake
 
Trading Scenario 3
Pearson pushes lower and the spread trading market is revised and changes to 1324.1p - 1327.1p. Therefore you would see:   1324.1   1327.1
Time to Take Your Profit? At this point, you may decide to leave your position open or close it, i.e. close your spread bet to lock in your profit. In this instance you choose to settle your bet by buying the market at 1327.1p.
Your P/L = (Opening Price - Closing Price) x stake
(1358.0p - 1327.1p) x £4 per penny
30.9p x £4 per penny
Your P/L = £123.60 profit
 
Trading Scenario 4
Pearson increases and the market becomes 1381.1p - 1384.1p, i.e. you would see:   1381.1   1384.1
Limit the Loss?At this point, you could choose to leave your position open or close it, i.e. close your spread bet and restrict your loss. In this instance you decide to settle your bet by buying at 1384.1p.
Your P/L = (Opening Price - Closing Price) x stake
(1358.0p - 1384.1p) x £4 per penny
-26.1p x £4 per penny
Your P/L = -£104.40 loss

Where Can I Practice Financial Spread Betting on Pearson?

FinancialSpreads.com provides you with the chance to test new trading ideas and theories by using a free Practice Account, markets include Pearson.

The Demo Account is not limited to the market above; investors can also get trading experience on a range of stocks, indices, commodity markets and FX rates.


More on Pearson plc (PSON)



A common ticker code for Pearson is 'PSON' however 'PSON.L' and 'LON:PSON' are also used.

For more news and information on the UK firm, also see: Financial Spreads is not responsible for the content of external / third party websites.


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support@financialspreads.com

Also see:
80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.