AstraZeneca Spread Betting Guide

AstraZeneca Spread Betting Guide

AstraZeneca Spread Betting Guide

arrow_forwardLive AstraZeneca Chart
arrow_forwardLive AstraZeneca Prices
arrow_forwardWhere to Spread Bet on AstraZeneca
arrow_forwardHow to Spread Bet on AstraZeneca


Live AstraZeneca CFD Chart and Prices



Where Can I Spread Bet on AstraZeneca?

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

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How to Spread Bet on AstraZeneca

As an example, let’s imagine you are interested in trading AstraZeneca, you look at a spread trading site, such as Tradefair, and get the latest spread:

AstraZeneca Rolling Daily: 2901.5p – 2905.5p

This is what you need to know about how it works.

Spread Betting Market: AstraZeneca Rolling Daily
The Price: 2901.5p – 2905.5p
This Means That: Now you can bet on the AstraZeneca Rolling Daily market to go:

  arrow_upward  Higher than 2905.5p, or
  arrow_downward  Lower than 2901.5p

This is a Rolling Daily spread bet and so there is no settlement date for this spread bet. If you decide not to close your trade and the session ends then your trade will roll over into the next trading session.

Note: if a trade rolls over then you will either receive or be charged a small fee for overnight financing based upon whether you are betting on the market to decrease or increase.

For additional information also see how a daily spread bet works.
Points (Units) Traded: Trades on the AstraZeneca market are priced in £x per penny.

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

E.g. if AstraZeneca changes by 30p then you would win/lose 30 multiples of your stake.
Trade Size: You work out how much you want to risk per penny, e.g. £2 per penny, £4 per penny, £20 per penny etc.
Brief Example: If, as an example, you had a stake of £2 per penny and AstraZeneca moves by 29p, you would lose/win £2 per penny x 29p = £58.


Worked Trading Example | Going Long of AstraZeneca

Online spread betting on the equity to move up in value

You Work Out Whether to Go Long or Short: AstraZeneca to push:

  arrow_upward  Higher than 2905.5p? or
  arrow_downward  Lower than 2901.5p?

You Might Want to Buy:   arrow_upward  Higher than 2905.5p
You Decide Your Stake, Let’s Assume You Opt For: £1 per penny
What Now?
  • You will make a profit of £1 for every penny AstraZeneca increases higher than 2905.5p
  • You will lose £1 for each penny AstraZeneca falls lower than 2905.5p
When You Buy a Market Your Trading Profits (or Losses) = (Final Value – Initial Value) x stake per penny
 
Trading Situation 1 AstraZeneca rises and the spread trading market is revised to 2992.7p – 2996.7p.
Close and Take a Profit? You could decide to leave your position open or close it, i.e. close your trade to lock in a profit. In this example you opt to close your bet and sell the market at 2992.7p.
Your Trading Profits (or Losses) = (Final Value – Initial Value) x stake per penny
(2992.7p – 2905.5p) x £1 per penny
87.2p x £1 per penny
Your Trading Profits (or Losses) = £87.20 profit
 
Trading Situation 2 AstraZeneca goes lower and the market changes to 2811.1p – 2815.1p.
Time to Restrict the Loss? At this point, you could opt to leave your bet open or close it, i.e. close your trade to limit your loss. In this case you decide to close your trade by selling at 2811.1p.
Your Trading Profits (or Losses) = (Final Value – Initial Value) x stake per penny
(2811.1p – 2905.5p) x £1 per penny
-94.4p x £1 per penny
Your Trading Profits (or Losses) = -£94.40 loss


Fully Worked Spread Trading Example | Selling AstraZeneca

Spread trading on the equity to go down

You Now Consider Whether to Buy or Sell: AstraZeneca going:

  arrow_upward  Higher than 2905.5p? or
  arrow_downward  Lower than 2901.5p?

Let’s Say You Sell:   arrow_downward  Lower than 2901.5p
You Select Your Stake Size, Choosing: £2 per penny
So What Happens Next?
  • You will lose £2 for each penny AstraZeneca pushes above 2901.5p
  • You will make a profit of £2 for each penny AstraZeneca falls below 2901.5p
When Betting on a Market to Decrease Your Trading Profits (or Losses) = (Initial Value – Final Value) x stake per penny
 
Trading Situation 3 AstraZeneca falls and the financial spread betting market adjusts and moves to 2845.3p – 2849.3p.
Time to Lock in 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 case you opt to close your trade and buy at 2849.3p.
Your Trading Profits (or Losses) = (Initial Value – Final Value) x stake per penny
(2901.5p – 2849.3p) x £2 per penny
52.2p x £2 per penny
Your Trading Profits (or Losses) = £104.40 profit
 
Trading Situation 4 AstraZeneca increases and the spread betting market is revised and moved to 2954.1p – 2958.1p.
Limit the Loss?At this point, you may choose to let your bet run or close it in order to limit your loss. For this example, you choose to close your bet by buying the market at 2958.1p.
Your Trading Profits (or Losses) = (Initial Value – Final Value) x stake per penny
(2901.5p – 2958.1p) x £2 per penny
-56.6p x £2 per penny
Your Trading Profits (or Losses) = -£113.20 loss


AstraZeneca Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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