Guide to Shares Spread Betting

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Financial Spreads: Spread Betting and CFD Trading

Losses can exceed deposits

Where Can I Access Live Share Prices?

A Financial Spreads account gives you real-time pricing on 1,000+ spread betting and CFD markets including the equities listed above.

Clients can also get real-time prices on a large variety of stock market indices, commodities and forex markets.


Tax-Free* Shares Spread Betting

Spread betting, including shares spread betting, is currently tax-free in the UK. Note though, tax treatment does depend upon the individual circumstances of each client and can change in the future.

UK Shares Spread Betting Guides

For further guides to individual UK shares see:

US Shares Spread Betting Guides

For further guides to individual US shares see:

German Shares Spread Betting Guides

For further guides to individual German shares see:

French Shares Spread Betting Guides

For further guides to individual French shares see:

Spanish Shares Spread Betting Guides

For further guides to individual Spanish shares see:

Dutch Shares Spread Betting Guides

For further guides to individual Dutch shares see:

Where Can I Get Live Shares Charts?

Using a Financial Spreads account clients can access live charts for the above shares and many other CFD and spread betting markets.

Along with different display styles, the package has a large variety of benefits:
Sample Financial Spreads equity chart:

Shares Spread Betting Charts



How to Spread Bet on Shares

The following example is based on a popular UK share, Barclays.

For more worked equities examples also see: Let's assume that you go on Financial Spreads and see the current price is:

  Barclays Rolling Cash Sell

261.82
Buy

262.28


Here is an example of how the market works:

Spread Trading MarketBarclays Rolling Cash
The Spread Betting Price261.82p - 262.28p
How This WorksNow you can bet on the Barclays Rolling Cash market going:

  Spread Betting Higher than 262.28p, or
  Spread Betting Lower than 261.82p

This is a 'Rolling' spread betting market and so there is no final closing date for this trade. If you haven't closed your trade and the session ends then your position will roll over to the next trading day.

If a trade is rolled over then you will normally either be charged or credited for overnight financing based on whether you are speculating on the market to decrease or increase. For further information also see Rolling Spread Betting.
Units (Points) TradedSpread trades on the Barclays market are priced in £x per penny price movement.

E.g. if Barclays changes by 45p then you would lose/win 45 times your stake.
Stake SizeYou decide what to risk per penny, e.g. £3 per penny, £4 per penny, £20 per penny etc.
Simplified Trading ExampleIf, as an example, your stake was £3 per penny and Barclays moves 26p, you would win / lose £3 per penny x 26p = £78.


Worked Example - Spread Betting on Shares to Rise

Taking a Bullish View of Barclays

You Now Consider Whether to Buy or Sell Barclays moving:

  Spread Betting Higher than 262.28p? or
  Spread Betting Lower than 261.82p?

You Might Decide to Go Long   Spread Betting Higher than 262.28p
You Choose Your Stake, Choosing £15 per penny
So What Happens Next?
  • You will make a profit of £15 for every penny Barclays pushes higher than 262.28p
  • Your trade loses £15 for each penny Barclays goes below 262.28p
If You Are Going Long of a Market Your Profits/Losses = (Final Price - Opening Price) x stake
 
Example 1
Barclays climbs and the spread trading market changes to 272.12p - 272.58p, so you would see this on Financial Spreads:   272.12   272.58
Time to Take Your Profit? At this point, you could opt to leave your spread bet open or close it, i.e. close your trade for a profit. In this example you decide to close your trade by selling at 272.12p.
Your Profits/Losses = (Final Price - Opening Price) x stake
(272.12p - 262.28p) x £15 per penny
9.84p x £15 per penny
Your Profits/Losses = £147.60 profit
 
Example 2
Barclays goes lower and the spread betting market is revised and moved to 253.49p - 253.95p, i.e. the market moves to:   253.49   253.95
Restrict the Loss? You can choose to let your position run or close it, i.e. close your trade to limit your losses. For this example, you opt to settle your position by selling the market at 253.49p.
Your Profits/Losses = (Final Price - Opening Price) x stake
(253.49p - 262.28p) x £15 per penny
-8.79p x £15 per penny
Your Profits/Losses = -£131.85 loss


Worked Example - Spread Betting on Shares to Fall

Taking a Bearish View of Barclays

You Now Decide to Go Long or Short Barclays to move:

  Spread Betting Higher than 262.28p? or
  Spread Betting Lower than 261.82p?

Let's Assume You Decide to Go Short   Spread Betting Lower than 261.82p
You Choose How Much to Risk, Let's Assume You Opt For £10 per penny
Now What?
  • Your trade loses £10 for each penny Barclays rises higher than 261.82p
  • You will make a profit of £10 for each penny Barclays falls below 261.82p
If You Are Betting on a Market to Fall Your Profits/Losses = (Opening Price - Final Price) x stake
 
Example 3
The Barclays stock slips and the market becomes 249.58p - 250.04p, so you would see:   249.58   250.04
Close for a Profit? At this point, you may choose to keep your trade open or close it and lock in a profit. In this case you choose to settle your position and buy at 250.04p.
Your Profits/Losses = (Opening Price - Final Price) x stake
(261.82p - 250.04p) x £10 per penny
11.78p x £10 per penny
Your Profits/Losses = £117.80 profit
 
Example 4
The Barclays stock increases and the financial spread betting market is revised and changes to 271.89p - 272.35p, therefore you would see:   271.89   272.35
Time to Limit the Loss?You can decide to let your position run or close it, i.e. close your spread bet to restrict your loss. For this example, you decide to close your trade by buying at 272.35p.
Your Profits/Losses = (Opening Price - Final Price) x stake
(261.82p - 272.35p) x £10 per penny
-10.53p x £10 per penny
Your Profits/Losses = -£105.30 loss

Where Can I Practice Financial Spread Betting on Shares?

Financial Spreads offer a Demo Account where investors can practice trading, analyse charts, test new trading theories and use trading orders on numerous spread betting and CFD markets.

The Financial Spreads Demo Account comes with a large range of shares, stock market indices, FX rates and commodities.

Stock Market Information

Further news and information on the stock markets: Financial Spreads is not responsible for the content of external / third party websites.


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