UK Stock Market Spread Betting Guide

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Where Can I Spread Bet on the UK 100?

FinancialSpreads.com offers a wide array of indices such as the UK 100 as well as the Wall Street 30, Germany 30, Japan 225 and US Tech 100.

Investors can also speculate on individual UK shares.

Where Can I Access Live UK 100 Prices?

A FinancialSpreads account provides investors with real time pricing on more than a thousand spread trading and CFD markets such as the UK 100 and a large variety of other indices, shares, commodities and foreign exchange prices.



Indicative Prices

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

Where Can I Get Live UK 100 Charts?

With Financial Spreads clients have access to a real time charting package for the UK 100 and over 1,000 other markets.

Along with the various chart types, the package also comes with a wide variety of benefits:
Example stock index spread trading chart:

Stock Market Index Spread Betting Charts



A Guide to Spread Betting on the UK 100

Let's suppose that you look at the FinancialSpreads site and the trading platform is showing a quote of:

  UK 100 Rolling Cash Sell

6957.5
Buy

6958.3


This is an example of how the market works...

Market:UK 100 Rolling Cash
Spread:6957.5 - 6958.3
How This Works:Now you can bet on the UK 100 Rolling Cash market going:

  Spread Betting Higher than 6958.3, or
  Spread Betting Lower than 6957.5

This is a Rolling spread betting market which means that there is no closing date for this spread bet. If you decide not to close your trade and the trading session ends then your trade will automatically roll over into the next session.

If a trade is rolled over then you will normally either have to pay or receive interest for overnight financing based upon whether you are betting on the market to decrease or increase. For additional details also see Rolling Spread Bets.
Units Traded:Bets on the UK 100 market are made in £x per point.

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

E.g. if the UK 100 moves 55 points then you would win or lose 55 times your stake.
Stake per Unit:You work out how much you are going to trade per point, e.g. £1 per point, £4 per point, £10 per point etc.
Quick Example:If, as an example, you went with a stake of £3 per point and the UK 100 moves by 33 points, you would lose / win £3 per point x 33 points = £99.


Trading Example - Taking a Long Position on the UK 100

Financial spread betting on the index to go up

You Now Choose to Buy or Sell: The UK 100 to go:

  Spread Betting Higher than 6958.3? or
  Spread Betting Lower than 6957.5?

You Might Choose to Buy:   Spread Betting Higher than 6958.3
You Decide Your Stake Size, Let's Say You Opt For: £3 per point
So Now What?
  • You will make £3 for every point the UK 100 moves higher than 6958.3
  • Your spread bet loses £3 for each point the UK 100 goes below 6958.3
When You Buy a Market Your Trading P&L = (Final Price - Initial Price) x stake
 
Trading Situation 1
The UK 100 increases and the financial spread betting market is moved to 7010.5 - 7011.3, so you would see:   7010.5   7011.3
Time to Take Your Profit? You can opt to let your spread bet run or close it and lock in a profit. In this instance you decide to settle your position by selling the market at 7010.5.
Your Trading P&L = (Final Price - Initial Price) x stake
(7010.5 - 6958.3) x £3 per point
52.2 points x £3 per point
Your Trading P&L = £156.60 profit
 
Trading Situation 2
The UK 100 decreases and the spread betting market moves to 6912.0 - 6912.8, so you'd see this on Financial Spreads:   6912.0   6912.8
Time to Limit Your Loss? At this point, you could choose to leave your bet open or close it, i.e. close your trade to limit your losses. For this example, you opt to close your bet and sell at 6912.0.
Your Trading P&L = (Final Price - Initial Price) x stake
(6912.0 - 6958.3) x £3 per point
-46.3 points x £3 per point
Your Trading P&L = -£138.90 loss


Worked Spread Betting Example - Selling the UK 100

Spread trading on the index to go down

You Now Decide Whether to Go Long or Short: The UK 100 to move:

  Spread Betting Higher than 6958.3? or
  Spread Betting Lower than 6957.5?

Let's Assume You Want to Sell:   Spread Betting Lower than 6957.5
You Choose Your Stake, Selecting: £4 per point
So What Next?
  • Your spread bet loses £4 for each point the UK 100 pushes higher than 6957.5
  • You will make £4 for each point the UK 100 decreases lower than 6957.5
When Betting on a Market to Go Down Your Trading P&L = (Initial Price - Final Price) x stake
 
Trading Situation 3
The UK 100 slips and the market is revised to 6916.0 - 6916.8, therefore you'd see this on Financial Spreads:   6916.0   6916.8
Time to Lock in Your Profit? You could opt to leave your position open or close it, i.e. close your position for a profit. In this instance you opt to close your trade by buying at 6916.8.
Your Trading P&L = (Initial Price - Final Price) x stake
(6957.5 - 6916.8) x £4 per point
40.7 points x £4 per point
Your Trading P&L = £162.80 profit
 
Trading Situation 4
The UK 100 goes higher and the spread trading market is revised and is set at 6992.8 - 6993.6:   6992.8   6993.6
Close and Limit the Loss?At this point, you can opt to leave your bet open or close it, i.e. close your trade and restrict your losses. For this example, you choose to close your trade and buy the market at 6993.6.
Your Trading P&L = (Initial Price - Final Price) x stake
(6957.5 - 6993.6) x £4 per point
-36.1 points x £4 per point
Your Trading P&L = -£144.40 loss

Spread Betting on UK Stock Market Futures

As well as the above 'Rolling' market, we also offer a UK stock index 'Futures' market.

Let's assume our current quote is:

  UK 100 March Futures Sell

6937.4
Buy

6941.4


This is a brief guide to how the market works...

MarketUK 100 March Futures
Price (Spread)6937.4 - 6941.4
How the Trade WorksNow you can bet on the UK 100 futures market settling:

  Spread Betting Above 6941.4, or
  Spread Betting Below 6937.4

On the closing date for this March market, 20 March 2015. This spread bet is a Futures market and so the bet will close on the settlement date. However, usually you can close your position, during market hours, before the expiry date.

Also bear in mind that you will not be charged daily financing fees on these futures markets.
Trading UnitsFinancial spread bets on the UK 100 futures market are made in £x per point.

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

E.g. if the UK 100 moves by 35 points then you would win/lose 35 times your stake.
Stake SizeYou work out how much you want to risk per point, e.g. £3 per point, £8 per point, £10 per point etc.
Quick Staking ExampleWith that in mind, if your stake was £3 per point and the UK 100 changes by 31 points, you would lose or win £3 per point x 31 points = £93.


Worked Spread Betting Example - Buying UK Stock Market Futures

Financial spread betting on the stock index to move higher

You Now Select Whether to Go Long or Short The UK 100 futures market closing:

  Spread Betting Above 6941.4? or
  Spread Betting Below 6937.4?

When the market is settled (expires), 20 March 2015.

You Might Choose to Buy   Spread Betting Above 6941.4
You Select How Much to Risk, Let's Assume You Choose £3 per point
So What Happens Now?
  • You gain £3 for each point the UK 100 rises higher than 6941.4
  • You lose £3 for every point the UK 100 pushes below 6941.4
If You Are Betting on a Market to Go Up Your P/L = (Settlement Price - Opening Price) x stake
 
Example 1
The UK 100 climbs and the spread trading market becomes 6998.7 - 7002.7, so you would see this on Financial Spreads:   6998.7   7002.7
Time to Lock in a Profit? You could choose to keep your position open and let it run to the settlement date or close it in order to lock in your profit. In this example you choose to close your trade and sell at 6998.7.
Your P/L = (Settlement Price - Opening Price) x stake
(6998.7 - 6941.4) x £3 per point
57.3 points x £3 per point
Your P/L = £171.90 profit
 
Example 2
The UK 100 slips.
Close and Limit Your Loss? You may choose to keep your trade open, letting it run to the expiry date, or close it, i.e. close your trade to restrict your loss. In this instance, you decide to run your position until expiry. The market then reaches the end of the contract and closes at 6889.3.
Your P/L = (Settlement Price - Opening Price) x stake
(6889.3 - 6941.4) x £3 per point
-52.1 points x £3 per point
Your P/L = -£156.30 loss


Worked Spread Betting Example - Selling UK Stock Market Futures

Financial spread trading on the stock index to decrease

You Select Whether to Buy or Sell The UK 100 to close:

  Spread Betting Above 6941.4? or
  Spread Betting Below 6937.4?

On the settlement date, 20 March 2015.

Let's Say You Want to Go Short   Spread Betting Below 6937.4
You Decide Your Stake Size, Let's Say You Choose £2 per point
What Happens Now?
  • You lose £2 for every point the UK 100 pushes higher than 6937.4
  • You gain £2 for every point the UK 100 falls lower than 6937.4
If You Are Selling a Market Your P/L = (Opening Price - Settlement Price) x stake
 
Example 3
The UK 100 futures market pushes lower
Lock in Your Profit? You could opt to leave your trade open, and maybe let it run to the settlement date, or close it in order to lock in a profit. For this example, you decide to let your position run until expiry. Ultimately, the market settles at 6868.7.
Your P/L = (Opening Price - Settlement Price) x stake
(6937.4 - 6868.7) x £2 per point
68.7 points x £2 per point
Your P/L = £137.40 profit
 
Example 4
The UK 100 goes higher and the spread betting market is moved to 6995.8 - 6999.8, therefore you would see:   6995.8   6999.8
Time to Restrict Your Loss?At this point, you may choose to leave your trade open, letting it run to the expiry date, or close it, i.e. close your spread bet and restrict your loss. For this example, you choose to close your position and buy the market at 6999.8.
Your P/L = (Opening Price - Settlement Price) x stake
(6937.4 - 6999.8) x £2 per point
-62.4 points x £2 per point
Your P/L = -£124.80 loss


Where Can I Practice Financial Spread Betting on the UK 100?

Financial Spreads provide a free Demo Account that allows investors to try out new trading strategies, practice with new trading orders, analyse the live charts and practice trading on markets including the UK 100.

The Financial Spreads Demo Account doesn't just cover a handful of markets; traders are also able to gain experience on a large variety of FX rates, stocks and shares, commodities and stock market indices.

UK Shares Spread Betting Guides

For guides to individual UK equities see:

Trading the FTSE 100 in October

In the past, the month of October has seen remarkable moves in the financial markets, and it's usually the ones that cause the most pain that are remembered.

As recently as 2008, the markets were still reeling from Lehman Brothers when October saw the FTSE 100 fall over 10%, adding to the 13% decline of the previous month. However, for the records, it is the crash of 1987 that remains etched on investors' minds.

For the FTSE 100, the average monthly declines in October significantly exceed those of the average falls in any other month. On top of this, October is historically the most volatile month, with an average range of nearly 12%.

But for all its sins, October is actually one of the more bullish months of the year in terms of number of rises compared to number of declines.

There have been 21 gains out of 28 for the UK index, a record only surpassed by the month of December.

Of course, December is the most bullish month of all as investors ride the Christmas rally higher almost every year.

Written October 2012


FTSE 100 Trading Patterns

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