Barclays Spread Betting Guide

Barclays Spread Betting Guide

Barclays Spread Betting Guide

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


Live Barclays Chart and Prices



26 October 2017: It’s Q3 and Barclays Shares Are Down 6%

It’s an ugly Q3 report from Barclays:

  • trending_upLower PPI payments have lifted headline profitability by 40%
  • trending_downWorse though are the investment and corporate side of things where the bank’s revenue dropped 18%. Oops
  • trending_downBarclays’ Fixed Income, Currencies and Commodities (FICC) unit has seen fall 34%
Josh Mahony at IG raises a good point though:

FICC revenues look like a disaster but this isn’t far off the industry average

A lack of volatility is hurting trading volumes


Where Can I Spread Bet on Barclays?

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

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Company Shares? Shares
Min Stake
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Financial Spreads Review check_box £0.50 check_boxiOS
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check_box £0 check_box Apply

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IG Review check_box £1-5 check_boxiOS
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How to Spread Bet on Barclays

For example, let’s suppose you are interested in speculating on Barclays, you go on a spread trading site, e.g. Financial Spreads, and see they are offering the market price priced at:

Barclays Rolling Daily: 171.6p – 172.1p

Here is how the trade works

The Market: Barclays Rolling Daily
The Spread: 171.6p – 172.1p
What This Means: You can take a position on the Barclays Rolling Daily market to move:

  arrow_upward  Above 172.1p, or
  arrow_downward  Below 171.6p

This is a ‘Rolling Daily’ trade so it does not have a final closing date. If you don’t close your position and the trading session ends then your position will automatically roll over to the next trading session.

Note: if the trade is rolled over then you will normally either have to pay or receive a small fee for overnight financing depending on whether you are speculating on the market to decrease or increase.

For further information see how a rolling spread bet works.
Points (Units) Traded: Spread betting trades on the Barclays market are made in £x per penny.

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

E.g. if Barclays changes by 30p then you would gain or lose 30 multiples of your stake.
Stake: You decide how much you would like to risk per penny, e.g. £1 per penny, £4 per penny, £8 per penny etc.
Quick Staking Exercise: If, as an example, you had a stake of £3 per penny and Barclays moves 26p, you would lose or gain £3 per penny x 26p = £78.


Fully Worked Trading Example | Buying Barclays

Spread trading on the UK bank’s share price to rise

You Choose to Go Long or Short: Barclays moving:

  arrow_upward  Above 172.1p? or
  arrow_downward  Below 171.6p?

Let’s Say You Choose to Go Long:   arrow_upward  Above 172.1p
You Select How Much to Risk, Choosing: £15 per penny
So Now What Happens?
  • You make a profit of £15 for each penny Barclays rises higher than 172.1p
  • You lose £15 for every penny Barclays pushes lower than 172.1p
If You Buy a Market Your Trading Profits or Losses = (Closing Price – Opening Price) x stake per penny
 
Scenario 1 Barclays climbs and the spread betting market is revised and changes to 176.8p – 177.3p.
Close for a Profit? You may opt to leave your trade open or close it, i.e. close your position for a profit. For this example, you choose to settle your position by selling at 176.8p.
Your Trading Profits or Losses = (Closing Price – Opening Price) x stake per penny
(176.8p – 172.1p) x £15 per penny
4.7p x £15 per penny
Your Trading Profits or Losses = £70.50 profit
 
Scenario 2 Barclays falls and the spread trading market is adjusted to 166.3p – 166.8p.
Restrict Your Loss? At this point, you may opt to let your trade run or close it and limit your loss. In this example you opt to settle your position and sell the market at 166.3p.
Your Trading Profits or Losses = (Closing Price – Opening Price) x stake per penny
(166.3p – 172.1p) x £15 per penny
-5.8p x £15 per penny
Your Trading Profits or Losses = -£87.00 loss


Worked Example | Selling Barclays

Spread betting on the UK bank’s shares to drop

You Now Decide Whether to Buy or Sell: Barclays going:

  arrow_upward  Above 172.1p? or
  arrow_downward  Below 171.6p?

You Might Decide to Sell:   arrow_downward  Below 171.6p
You Select Your Stake Size, Selecting: £10 per penny
So What Happens Now?
  • You lose £10 for every penny Barclays pushes above 171.6p
  • You make a profit of £10 for every penny Barclays decreases below 171.6p
When You Go Short With a Spread Bet Your Trading Profits or Losses = (Opening Price – Closing Price) x stake per penny
 
Scenario 3 Barclays pushes lower and the financial spread betting market adjusts and moves to 162.8p – 163.3p.
Time to Take a Profit? At this point, you may decide to leave your trade open or close it in order to lock in a profit. For this example, you do your technical analysis and choose to close your position and buy the market at 163.3p.
Your Trading Profits or Losses = (Opening Price – Closing Price) x stake per penny
(171.6p – 163.3p) x £10 per penny
8.3p x £10 per penny
Your Trading Profits or Losses = £83.00 profit
 
Scenario 4 Barclays goes higher and the market becomes 181.2p – 181.7p.
Close and Restrict the Loss?You may opt to keep your trade open or close it, i.e. close your position and limit your loss. In this example you choose to settle your bet by buying the market at 181.7p.
Your Trading Profits or Losses = (Opening Price – Closing Price) x stake per penny
(171.6p – 181.7p) x £10 per penny
-10.1p x £10 per penny
Your Trading Profits or Losses = -£101.00 loss


Barclays Bank Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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