Anglo American Spread Betting Guide

Anglo American Spread Betting Guide

Anglo American Spread Betting Guide

arrow_forwardLive Anglo American Chart
arrow_forwardLive Anglo American Prices
arrow_forwardWhere to Spread Bet on Anglo American
arrow_forwardHow to Spread Bet on Anglo American


Live Anglo American Chart and Prices



Where Can I Spread Bet on Anglo American?

Most of the spread betting brokers will offer prices and charts on shares including Anglo American e.g.:

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How to Spread Bet on Anglo American

As an example, let’s say you are thinking of spread betting on Anglo American, you look at a financial spread betting site, e.g. InterTrader, and they are offering the real-time market of:

Anglo American Rolling Daily: 2466.2p – 2470.3p

This is what happens…

Spread Trading Market Anglo American Rolling Daily
Quote (The Spread) 2466.2p – 2470.3p
What This Means Now you can bet on the Anglo American Rolling Daily market going:

  arrow_upward  Above 2470.3p, or
  arrow_downward  Below 2466.2p

This is a Rolling Daily spread betting market so it does not have a final closing date. If you haven’t closed your trade and the session ends then your trade will roll over into the next trading day.

If a trade does roll over then you will normally either be debited or credited for overnight financing depending on whether you are betting on the market to rise or fall.

To learn more also see Rolling Spread Betting.
Units (Points) Traded Shares spread bets on the Anglo American market are made in £x per penny.

Where a penny is 1p of the equity’s price movement.

E.g. if Anglo American moves 50p then you would win or lose 50 times your stake.
Stake Size per Unit You choose how much you want to trade per penny, e.g. £1 per penny, £4 per penny, £15 per penny etc.
Quick Example With that in mind, if you decided on a stake of £3 per penny and Anglo American changes by 21p, you would win/lose £3 per penny x 21p = £63.


Spread Betting Example | Taking a Long Position on Anglo American

Spread betting on the mining company’s share price to rise

You Work Out Whether to Buy or Sell Anglo American to go:

  arrow_upward  Above 2470.3p? or
  arrow_downward  Below 2466.2p?

Let’s Say You Decide to Go Long   arrow_upward  Above 2470.3p
You Choose Your Stake Size, Selecting £2 per penny
Now What Happens?
  • You will win £2 for every penny Anglo American pushes higher than 2470.3p
  • You lose £2 for each penny Anglo American pushes below 2470.3p
When Betting on a Market to Increase Your P&L = (Closing Level – Initial Level) x stake per penny
 
Trading Example 1 Anglo American moves higher and the spread trading market is revised and set at 2538.2p – 2542.3p.
Lock in Your Profit? At this point, you may decide to keep your bet open or close it, i.e. close your position to lock in your profit. In this instance you decide to close your position and sell at 2538.2p.
Your P&L = (Closing Level – Initial Level) x stake per penny
(2538.2p – 2470.3p) x £2 per penny
67.9p x £2 per penny
Your P&L = £135.80 profit
 
Trading Example 2 Anglo American decreases and the spread betting market is adjusted to 2411.0p – 2415.1p.
Time to Limit Your Loss? You could opt to let your trade run or close it, i.e. close your position to restrict your loss. In this case you choose to settle your trade by selling the market at 2411.0p.
Your P&L = (Closing Level – Initial Level) x stake per penny
(2411.0p – 2470.3p) x £2 per penny
-59.3p x £2 per penny
Your P&L = -£118.60 loss


Fully Worked Example | Taking a Bearish View of Anglo American

Financial spread trading on the UK share to fall

You Select Whether to Buy or Sell Anglo American to push:

  arrow_upward  Above 2470.3p? or
  arrow_downward  Below 2466.2p?

Let’s Say You Go Short   arrow_downward  Below 2466.2p
You Decide Your Stake Size, Let’s Say You Choose £1 per penny
So What Happens Next?
  • You lose £1 for each penny Anglo American goes higher than 2466.2p
  • You will win £1 for each penny Anglo American decreases lower than 2466.2p
When You Sell a Spread Bet Your P&L = (Initial Level – Closing Level) x stake per penny
 
Trading Example 3 Anglo American falls and the market becomes 2350.2p – 2354.3p.
Take Your Profit? At this point, you may opt to let your spread bet run or close it in order to take a profit. In this instance you opt to settle your trade and buy at 2354.3p.
Your P&L = (Initial Level – Closing Level) x stake per penny
(2466.2p – 2354.3p) x £1 per penny
111.9p x £1 per penny
Your P&L = £111.90 profit
 
Trading Example 4 Anglo American rises and the financial spread betting market is revised and changes to 2559.8p – 2563.9p.
Time to Restrict the Loss?At this point, you could opt to let your spread bet run or close it, i.e. close your trade and restrict your loss. In this instance you decide to close your trade by buying the market at 2563.9p.
Your P&L = (Initial Level – Closing Level) x stake per penny
(2466.2p – 2563.9p) x £1 per penny
-97.7p x £1 per penny
Your P&L = -£97.70 loss


Anglo American Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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