How to spread bet
Spread betting allows you to speculate on the future movement of market prices, whether the asset rises or drops in value. Discover how to spread bet in six steps — covering everything from opening a account to making your first trade.
To spread bet You decide to spread bet on forex, so start a position on EUR/USD, which will be trading in #1.19129. As spread betting markets are listed in points, when you enter the stage you’d see a market price of 11912.9. And, because of the spread, you would observe a sell price of 11912.6 plus also a purchase price of 11913.2.
You think that the dollar is going to rise against the euro, which means you decide to sell #15 per stage at 11912.6 — providing you a short position on the euro. EUR/USD includes a margin factor of 3.33 percent, so you’d want to deposit #5950.35 (#15 x 11912.6 x 3.33percent ).
If your forex spread wager was right Let us say EUR/USD fell to 11890.1, using a purchase price of 11890.4 plus a sell price of 11889.8. As you are ready to secure your profit, you would opt to shut your trade and buy the currency pair for #15 per stage at 11890.4.
The marketplace has moved by 22.2 points (11912.6 – 11890.4), which you multiply by #15 per stage to get your total benefit of #333 (#15 x 22.2). Remember, if you had maintained this place open overnight then your whole profit would be lower because of funding fees.