Australian Stock Market Spread Betting Guide

Australian Stock Market Spread Betting Guide

ASX 200 Spread Betting Guide

arrow_forwardLive ASX 200 Chart
arrow_forwardLive ASX 200 Prices
arrow_forwardWhere to Spread Bet on ASX 200
arrow_forwardHow to Spread Bet on ASX 200
arrow_forwardWhere to Spread Bet on Australian Shares
arrow_forwardHow to Spread Bet on Australian Shares

The Australia 200 is also known as the ‘ASX 200’ and the ‘Aus 200’.

Live ASX 200 Chart and Prices




26 October 2017: Australia 200 Breaks Out and Hits 5 Month High

Below, a quick 3 minutes video looking at the current technicals of the ASX 200.



Where Can I Spread Bet on the ASX 200?

A number of the more established brokers offer live charts & prices on stock markets indices including ASX 200, e.g.:

navigate_beforeComparison Scroll navigate_next
Company Index Min
Stake
UK
100
Spread
Germany
30
Spread
Wall
Street
Spread
S&P
500
Spread
NASDAQ
100
Spread
Japan
255
Spread
Apply
Financial Spreads Review £0.50 0.8 (5) 1 (2) 1 (4) 3 0.5 8 Apply

Review
City Index Review £1 1 (+) 1 (+) 1.6 (+) 6 1 (+) 8 (+) Apply

Review
ETX Capital Review £0.50 1 (2,6) 1 (2,6) 1 (2) 5 1 (2) Variable Apply

Review
IG Review £1-5 1 (4) 1 (5) 1.8 (5.8) 5 (9) 1 (3) 8 (30) Apply

Review



Where to Spread Bet on Australian Shares

Important – a number of spread betting companies offer spread betting on Australian shares however, unlike most stocks, you can’t always see them on the spread betting company website.

This is because the Australian stock market charges the spreads firms for every person who accesses the prices.

If you want to trade individual Australian stocks, you need contact your spread betting firm and ask to see the prices. You will probably need to ‘subscribe’ to the shares.

The last time we checked, the subscription cost was about £20 per year, so not a disaster if you want to trade companies listed on the Australian stock market.

You can trade a selection of leading Australian shares with:

How to Spread Bet on ASX 200

As an example, let’s suppose that you are thinking of spread trading on the Australia 200 (ASX 200), so you look at a financial spread betting website, such as Financial Spreads, and see they are offering the real time spread of:

Australia 200 Rolling Daily: 4260 – 4261

Here’s what you can expect

The Spread Betting Market: Australia 200 Rolling Daily
The Spread Trading Price: 4260 – 4261
This Means That: You can speculate on the Australia 200 Rolling Daily market moving:

  arrow_upward  Above 4261, or
  arrow_downward  Below 4260

This market is a ‘Rolling Daily’ market meaning that it does not have a final closing date. If you haven’t closed your position and the session ends then your trade will automatically roll over into the next trading session.

If the trade is rolled over then you will normally either pay or receive interest for overnight financing based upon whether you are speculating on the market to move lower or higher.

For more information also see how rolling spread betting markets work.
Units Traded: Spread trades on the Australia 200 market are made in £x per point.

Where a point is 1 point of the stock market index’s price movement.

E.g. if the Australia 200 moves 30 points then you would lose / win 30 multiples of your stake.
Stake (Trade Size): You choose what to risk per point, e.g. £2 per point, £4 per point, £20 per point etc.
Short Staking Exercise: For example, if your stake was £4 per point and the Australia 200 changes by 29 points, you would gain or lose £4 per point x 29 points = £116.


Fully Worked Trading Example | Taking a Bullish View of the Australia 200

Spread trading on the stock index to rise

You Now Work Out Whether to Buy or Sell: The Australia 200 to move:

  arrow_upward  Above 4261? or
  arrow_downward  Below 4260?

Let’s Assume You Decide to Go Long:   arrow_downward  Above 4261
You Select Your Stake Size, Let’s Say You Select: £3 per point
What Next?
  • You make £3 for every point the Australia 200 rises higher than 4261
  • You will make a loss of £3 for each point the Australia 200 falls lower than 4261
When Spread Betting on a Market to Increase Your P&L = (Closing Price – Opening Price) x stake per point
 
Example 1 The Australia 200 goes higher and the financial spread betting market is adjusted to 4293 – 4294.
Lock in a Profit? You can opt to let your position run or close it to take a profit. In this example you opt to settle your bet and sell at 4293.
Your P&L = (Closing Price – Opening Price) x stake per point
(4293 – 4261) x £3 per point
32 points x £3 per point
Your P&L = £96 profit
 
Example 2 The Australia 200 pushes lower and the spread betting market is revised and set at 4224 – 4225.
Restrict Your Loss? At this point, you may decide to keep your trade open or close it, i.e. close your trade and limit your losses. In this instance you decide to close your trade by selling at 4224.
Your P&L = (Closing Price – Opening Price) x stake per point
(4224 – 4261) x £3 per point
-37 points x £3 per point
Your P&L = -£111 loss


Fully Worked Example | Taking a Bearish View of the ASX 200

Spread betting on the stock index to decrease

You Select Whether to Go Long or Short: The Australia 200 going:

  arrow_upward  Above 4261? or
  arrow_downward  Below 4260?

You Might Decide to Sell:   arrow_downward  Below 4260
You Choose Your Stake Size, Opting for: £2 per point
Now What?
  • You will make a loss of £2 for each point the Australia 200 moves higher than 4260
  • You make £2 for each point the Australia 200 pushes lower than 4260
When Betting on a Market to Go Down Your P&L = (Opening Price – Closing Price) x stake per point
 
Example 3 The Australia 200 goes lower and the spread trading market is revised and is set at 4203 – 4204.
Take Your Profit? You could opt to leave your trade open or close it in order to take a profit. In this instance you decide to close your bet and buy the market at 4204.
Your P&L = (Opening Price – Closing Price) x stake per point
(4260 – 4204) x £2 per point
56 points x £2 per point
Your P&L = £112 profit
 
Example 4 The Australia 200 pushes higher and the market is revised and moved to 4324 – 4325.
Time to Limit Your Loss?You could opt to leave your position open or close it, i.e. close your position to limit your loss. In this instance you decide to close your position by buying the market at 4325.
Your P&L = (Opening Price – Closing Price) x stake per point
(4260 – 4325) x £2 per point
-65 points x £2 per point
Your P&L = -£130 loss

ASX 200 Notes:


How to Spread Bet on Australian Sharese

Let’s imagine you are thinking of speculating on Macquarie Group, so you go to IG, and see that they are offering the current market of:

Macquarie Rolling Daily: A$51.05 – A$51.18

This is what you can expect with a spread bet.

Spread Trading Market: Macquarie Rolling Daily
Quote (The Spread): A$51.05 – A$51.18
How the Market Works: Now you can bet on the Macquarie Rolling Daily market to go:

  arrow_upward  Above A$51.18, or
  arrow_downward  Below A$51.05

This spread betting market is a ‘Rolling Daily’ market and so there is no closing date for this trade. If you decide not to close your position and the trading session ends then your trade will roll over into the next trading day.

If a trade does roll over then you will either be charged or receive interest for overnight financing based upon whether you are speculating on the market to move higher or lower.

Units Traded: Financial spread bets on the Macquarie market are made in £x per cent.

Where a cent is A$0.01 of the Australian equity’s price movement.

E.g. if Macquarie Group changes by 50c (A$0.50) then you would gain or lose 50 times your stake.
Stake per Unit: You choose how much you want to stake per cent, e.g. £2 per cent, £3 per cent, £10 per cent etc.
Short Staking Example: If you went with a stake of £4 per cent and Macquarie Group moves by A$0.32 (32c), you would win or lose £4 per cent x 32c = £128.


Spread Trading Example | Taking a Bullish View of Macquarie Group

Spread betting on the share to rise in value

You Decide Whether to Buy or Sell: Macquarie Group to move:

  arrow_upward  Above A$51.18? or
  arrow_downward  Below A$51.05?

Let’s Say You Go Long:   arrow_downward  Above A$51.18
You Decide How Much to Risk, Let’s Say You Opt For: £2 per cent
What Happens Now?
  • You will make a profit of £2 for each cent (A$0.01) Macquarie Group rises higher than A$51.18
  • You make a loss of £2 for every cent (A$0.01) Macquarie Group decreases below A$51.18
When Spread Betting on a Market to Rise Your P&L = (Closing Price – Opening Price) x stake per cent
 
Example 1 Macquarie Group increases and the market moves to A$51.82 – A$51.95.
Time to Lock in a Profit? At this point, you could decide to keep your bet open or close it, i.e. close your trade for a profit. For this example, you choose to settle your bet by selling the market at A$51.82.
Your P&L = (Closing Price – Opening Price) x stake per cent
(A$51.82 – A$51.18) x £2 per cent
A$0.64 x £2 per cent
64c x £2 per cent
Your P&L = £128 profit
 
Example 2 Macquarie Group slips and the spread betting market becomes A$50.59 – A$50.72.
Time to Limit the Loss? At this point, you could choose to let your position run or close it, i.e. close your trade and limit your losses. In this instance you choose to close your position by selling at A$50.59.
Your P&L = (Closing Price – Opening Price) x stake per cent
(A$50.59 – A$51.18) x £2 per cent
-A$0.59 x £2 per cent
-59c x £2 per cent
Your P&L = -£118 loss


Financial spread betting on the share to move down

You Choose to Buy or Sell: Macquarie Group moving:

  arrow_upward  Above A$51.18? or
  arrow_downward  Below A$51.05?

Let’s Say You Sell:   arrow_downward  Below A$51.05
You Choose Your Stake, Let’s Assume You Opt For: £3 per cent
What Now?
  • You make a loss of £3 for every cent (A$0.01) Macquarie Group moves above A$51.05
  • You will make a profit of £3 for every cent (A$0.01) Macquarie Group falls lower than A$51.05
When You Go Short With a Spread Bet Your P&L = (Opening Price – Closing Price) x stake per cent
 
Example 3 Macquarie Group falls and the spread trading market is revised to A$50.41 – A$50.54.
Time to Take a Profit? At this point, you can opt to leave your trade open or close it, i.e. close your position for a profit. In this case you decide to settle your position and buy the market at A$50.54.
Your P&L = (Opening Price – Closing Price) x stake per cent
(A$51.05 – A$50.54) x £3 per cent
A$0.51 x £3 per cent
51c x £3 per cent
Your P&L = £153 profit
 
Example 4 Macquarie Group climbs and the financial spread betting market is adjusted to A$51.39 – A$51.52.
Restrict Your Loss?You may opt to let your position run or close it to restrict your losses. In this example you choose to close your position by buying the market at A$51.52.
Your P&L = (Opening Price – Closing Price) x stake per cent
(A$51.05 – A$51.52) x £3 per cent
-A$0.47 x £3 per cent
-47c x £3 per cent
Your P&L = -£141 loss


Macquarie Notes:

  • Spread betting prices from CapitalSpreads as of 28 January 2010
  • Many spread betting companies will also give you the option of financial spread betting on Macquarie Group in euros/cent and dollars/cent

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

Leave a Reply

Be the First to Comment!

Notify of
wpDiscuz