Quick Guide to Spread Betting on the US Tech 100 Stock Market Index

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US Tech 100 Spread Betting

US Tech 100 Spread Betting


A guide to spread betting on the US Tech 100:

Where Can I Spread Bet on the US Tech 100?

With a Financial Spreads account investors are able to trade on an array of stock market indices. These include the US Tech 100 but also the Wall St 30, SPX 500 and UK 100.

Where Can I Access Live US Tech 100 Prices?

FinancialSpreads.com offers investors real time prices on more than 1,000 spread betting and CFD markets like the US Tech 100 and a wide variety of other stock market indices, commodities, foreign exchange and shares markets.

Where Can I Get Live US Tech 100 Charts?

Using a FinancialSpreads account investors can look at live trading charts for the US Tech 100 and more than a thousand other markets.

To aid your technical analysis, the chart comes with a large range of benefits including:
  • A number of different time intervals, for example, 5 minutes, 1 hour, 4 hours and so on
  • Chart overlays and indicators, for example, Exponential Moving Average, RSI and so on
  • Drawing options and features, for example, trendlines, Fibonacci arcs, time zones and fans

Example FinancialSpreads stock market index candlestick chart:

Stock Market Index Spread Betting Charts



Financial Spread Betting on the US Tech 100

Let's assume that you sign into Financial Spreads and the spread betting platform is showing a quote of:

Bid Ask
  US Tech 100 Rolling Cash 4362.2 4362.7


Here's a brief guide to how the market works...

The Spread Betting Market:US Tech 100 Rolling Cash
The Price:4362 - 4363
How the Market Works:You can bet on the US Tech 100 Rolling Cash market to go:

  Spread Betting Higher than 4363, or
  Spread Betting Lower than 4362

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

Note that if a trade rolls over then you will normally either have to pay or receive a small fee for overnight financing based on whether you are betting on the market to fall or rise. To learn more also see Rolling Spread Bets.
Trading Units:Trades on the US Tech 100 market are priced in £x per point.

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

E.g. if the US Tech 100 changes by 35 points then you would win/lose 35 times your stake.
Trade Size:You work out how much you would like to stake per point, e.g. £1 per point, £8 per point, £10 per point etc.
Brief Staking Example:As an example, if you decided on a stake of £3 per point and the US Tech 100 moves 29 points, you would gain or lose £3 per point x 29 points = £87.


Worked Trading Example - Taking a Long Position on the US Tech 100

Spread betting on the stock index to rise

You Now Choose Whether to Buy or Sell: The US Tech 100 moving:

  Spread Betting Higher than 4363? or
  Spread Betting Lower than 4362?

Letís Assume You Choose to Go Long:   Spread Betting Higher than 4363
You Choose Your Stake, Let's Say You Select: £3 per point
What Now?
  • You make a profit of £3 for each point the US Tech 100 pushes higher than 4363
  • You will lose £3 for every point the US Tech 100 moves below 4363
When Going Long of a Market Your P/L = (Final Price - Initial Price) x stake
 
Scenario 1
The US Tech 100 pushes higher and the spread betting market moves to 4417.2 - 4417.7, so you would see:  
4417.2
 
4417.7
Take a Profit? At this point, you could opt to leave your bet open or close it in order to take a profit. In this example you decide to close your position by selling the market at 4417.2.
Your P/L = (Final Price - Initial Price) x stake
(4417.2 - 4363) x £3 per point
54.5 points x £3 per point
Your P/L = £163.50 profit
 
Scenario 2
The US Tech 100 pushes lower and the financial spread betting market is revised and set at 4302.3 - 4302.8. Therefore Financial Spreads would show:  
4302.3
 
4302.8
Restrict the Loss? At this point, you can opt to keep your trade open or close it, i.e. close your trade to limit your losses. For this example, you choose to close your position and sell the market at 4302.3.
Your P/L = (Final Price - Initial Price) x stake
(4302.3 - 4363) x £3 per point
-60.4 points x £3 per point
Your P/L = -£181.20 loss


Worked Example - Taking a Bearish View of the US Tech 100

Spread trading on the stock index to move down

You Now Consider Whether to Buy or Sell: The US Tech 100 going:

  Spread Betting Higher than 4363? or
  Spread Betting Lower than 4362?

Let's Say You Sell:   Spread Betting Lower than 4362
You Decide How Much to Risk, Let's Assume You Opt For: £2 per point
What Next?
  • You will lose £2 for every point the US Tech 100 moves higher than 4362
  • You make a profit of £2 for every point the US Tech 100 goes below 4362
If You Are Spread Betting on a Market to Decrease Your P/L = (Initial Price - Final Price) x stake
 
Scenario 3
The US Tech 100 goes lower and the spread trading market is adjusted and moved to 4285.4 - 4285.9. So you would see this on Financial Spreads:  
4285.4
 
4285.9
Time to Lock in Your Profit? You may decide to keep your bet open or close it, i.e. close your position for a profit. In this example you opt to settle your trade and buy the market at 4285.9.
Your P/L = (Initial Price - Final Price) x stake
(4362 - 4285.9) x £2 per point
76.3 points x £2 per point
Your P/L = £152.60 profit
 
Scenario 4
The US Tech 100 rises and the market is moved to 4446.3 - 4446.8, i.e. you would see:  
4446.3
 
4446.8
Close and Restrict the Loss?You could choose to let your spread bet run or close it and restrict your loss. In this case you opt to close your position and buy at 4446.8.
Your P/L = (Initial Price - Final Price) x stake
(4362 - 4446.8) x £2 per point
-84.6 points x £2 per point
Your P/L = -£169.20 loss
  • US Tech 100 market comments: spread betting prices as per FinancialSpreads on 13 February 2015
  • Investors can also choose to speculate on the US Tech 100 in euros per point and US dollars per point


Financial Spread Betting on the US Tech 100 Futures

We also offer a US Tech 100 'Futures' market.

Let's say that you log on and our price is:

Bid Ask
  US Tech 100 March Futures 4357.7 4360.2


Here's a brief example of how the market works

Spread Trading Market:US Tech 100 March Futures
The Spread:4357.7 - 4360.2
How the Spread Works:You can bet on the US Tech 100 futures market closing:

  Spread Betting Above 4360.2, or
  Spread Betting Below 4357.7

On the closing date for this March market, 20 March 2015. This spread bet is a Futures market and therefore your bet will be closed automatically on the specified expiry date. Having said that, normally you can close your position, during trading hours, before the market expires.

Also consider that you will not be charged overnight financing fees on these futures contracts.
Units Traded:Spread bets on the US Tech 100 futures market are made in £x per point.

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

E.g. if the US Tech 100 moves 55 points then you would win / lose 55 times your stake.
Stake (Trade Size):You decide your stake per point, e.g. £2 per point, £5 per point, £10 per point etc.
Quick Staking Example:If, as an example, your stake was £4 per point and the US Tech 100 changes by 25 points, you would gain or lose £4 per point x 25 points = £100.


Worked Spread Betting Example - Buying the US Tech Futures

Spread trading on the stock market index to increase

You Now Select Whether to Go Long or Short: The US Tech 100 futures market settling:

  Spread Betting Above 4360.2? or
  Spread Betting Below 4357.7?

When the market is settled, 20 March 2015.

You Might Choose to Buy:   Spread Betting Above 4360.2
You Choose Your Stake Size, Let's Say You Choose: £5 per point
So What Happens Next?
  • You will make £5 for each point the US Tech 100 pushes higher than 4360.2
  • Your spread bet loses £5 for every point the US Tech 100 pushes lower than 4360.2
If You Are Betting on a Market to Go Up Your Profits (or Losses) = (Final Price - Initial Price) x stake
 
Situation 1
The US Tech 100 goes higher and the financial spread betting market is revised to 4384.2 - 4386.7, i.e. the market moves to:  
4384.2
 
4386.7
Take a Profit? At this point, you could opt to keep your trade open, letting it run to the settlement date, or close it to take a profit. In this instance you decide to settle your bet and sell at 4384.2.
Your Profits (or Losses) = (Final Price - Initial Price) x stake
(4384.2 - 4360.2) x £5 per point
24.0 points x £5 per point
Your Profits (or Losses) = £120.00 profit
 
Situation 2
The US Tech 100 decreases.
Restrict Your Loss? You may opt to leave your position open, and possibly let it run to the expiry date, or close it, i.e. close your spread bet to restrict your losses. In this example, you run the trade until expiry. The market finally closes at 4332.9.
Your Profits (or Losses) = (Final Price - Initial Price) x stake
(4332.9 - 4360.2) x £5 per point
-27.3 points x £5 per point
Your Profits (or Losses) = -£136.50 loss


Worked Spread Betting Example - Selling the US Tech Futures

Financial spread betting on the stock market index to move down

You Now Work Out Whether to Go Long or Short: The US Tech 100 to settle:

  Spread Betting Above 4360.2? or
  Spread Betting Below 4357.7?

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

Let's Assume You Go Short:   Spread Betting Below 4357.7
You Select Your Stake Size, Let's Assume You Choose: £4 per point
So What Now?
  • Your spread bet loses £4 for every point the US Tech 100 rises higher than 4357.7
  • You will make £4 for every point the US Tech 100 goes lower than 4357.7
If You Are Spread Betting on a Market to Decrease Your Profits (or Losses) = (Initial Price - Final Price) x stake
 
Situation 3
The US Tech 100 futures market moves lower
Time to Take Your Profit? You can decide to keep your position open, and maybe let it run to the settlement date, or close it in order to take your profit. In this example you run it until the market expires. The contract finally settles at 4330.1.
Your Profits (or Losses) = (Initial Price - Final Price) x stake
(4357.7 - 4330.1) x £4 per point
27.6 points x £4 per point
Your Profits (or Losses) = £110.40 profit
 
Situation 4
The US Tech 100 increases and the spread betting market becomes 4386.5 - 4389.0. So you would see this on Financial Spreads:  
4386.5
 
4389.0
Restrict the Loss?At this point, you can decide to let your position run to the settlement date or close it to limit your loss. In this example you opt to settle your bet by buying the market at 4389.0.
Your Profits (or Losses) = (Initial Price - Final Price) x stake
(4357.7 - 4389.0) x £4 per point
-31.3 points x £4 per point
Your Profits (or Losses) = -£125.20 loss
  • US Tech 100 notes: example prices taken from FinancialSpreads.com as of 13 February 2015
  • Investors could also choose to trade on the US Tech 100 in euros/point and dollars/point

Where Can I Practice Financial Spread Betting on the US Tech 100?

FinancialSpreads provide a free Practice Account which means you can analyse the candlestick charts, practice trading, test new trading theories and use trading orders on markets such as the US Tech 100.

The Financial Spreads Demo Account doesn't just cover the above market; you can try trading with a wide selection of forex pairs, shares, commodities and indices.

US Tech Shares

For trading guides to individual US tech stocks see:

NASDAQ 100 Index (Consolidated) Commitments of Traders Report - 9 Jun 2015


Futures Only Positions, CME , Code 20974+ , (NASDAQ 100 Index x $100)

Reporting Firms Non-Reportable Positions
Non-Commercial
Commercial Total Reportable
 
Commitments Open Interest Commitments
Long Short Spreads Long Short Long Short Long Short
16,444 8,272 2,697 45,857 56,859 64,998 67,828 72,917 7,919 5,089
 
Changes from Change in Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
-2,756 2,590 308 589 -5,067 -1,859 -2,169 -2,592 -733 -423
 
Percent of Open Interest for Each Category of Trader
Long Short Spreads Long Short Long Short   Long Short
22.6% 11.3% 3.7% 62.9% 78.0% 89.1% 93.0%   10.9% 7.0%
 
Number of Traders in Each Category Total Traders  
Long Short Spreads Long Short Long Short    
69 37 13 75 61 149 106 221    
 
Long/Short Commitments Ratios   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
2:1   1:1.2 1:1   1.6:1
 
Net Commitment Change  
-5,346  



Spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit so you should ensure spread betting and CFD trading meet your investment objectives and if necessary seek independent advice.

The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.



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