In spread betting you do not have to pay the full cost of what the share would be to buy – You will only have to pay a percentage – this is called trading on margin. It is always expressed in currency per point of movement e.g. Now, you must decide how much you are betting, that is, what your stake is – this is the amount of money you gain or lose per point of movement on the value of the share. If you think higher, you “buy” at the buy price, if you think lower you “sell” at the sell price. You must decide if you think the price of Tesco shares will go up higher than the buy price, or fall lower than the sell price. There will be always be two figures – the sell price and the buy price, the sell price will be lower. See a Spread Betting example in the right hand column of this page.Ĭheck the price quoted by the spread betting company
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