BT Spread Betting Guide

BT Spread Betting Guide

BT Spread Betting Guide

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


Live BT CFD Chart and Prices



Where Can I Spread Bet on BT?

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

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How to Spread Bet on BT

As an example, let’s imagine you are considering financial spread betting on BT, so you go on a financial spread betting website, e.g. InterTrader, and they are offering the quote priced at:

BT Group Rolling Daily: 199.5p – 199.9p

Here’s what you need to know about how it works…

The Market BT Group Rolling Daily
The Spread 199.5p – 199.9p
How the Spread Works Now you can trade on the BT Group Rolling Daily market moving:

  arrow_upward  Higher than 199.9p, or
  arrow_downward  Lower than 199.5p

This is a ‘Rolling Daily’ market which means that there is no final closing date for this trade. If you decide not to close your position and the session ends then your position will automatically roll over to the next session.

If a trade is rolled over then you will either have to pay or receive a small fee for overnight financing based upon whether you are betting on the market to go down or up.

For further details also read our guide to daily spread betting.
Trading Units Spread betting trades on the BT Group market are priced in £x per penny.

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

E.g. if BT moves 45p then you would win / lose 45 multiples of your stake.
Stake Size per Unit You decide how much you are going to trade per penny, e.g. £2 per penny, £3 per penny, £15 per penny etc.
Quick Staking Example With that in mind, if you went with a stake of £2 per penny and BT moves by 24p, you would win or lose £2 per penny x 24p = £48.


Fully Worked Spread Betting Example | Taking a Long Position on BT

Spread betting on the UK share to rise in value

You Now Work Out Whether to Buy or Sell BT going:

  arrow_upward  Higher than 199.9p? or
  arrow_downward  Lower than 199.5p?

Let’s Say You Buy   arrow_upward  Higher than 199.9p
You Choose Your Stake, Selecting £15 per penny
So Now What?
  • You make a gain of £15 for every penny BT Group rises higher than 199.9p
  • You will lose £15 for each penny BT Group pushes below 199.9p
When Betting on a Market to Increase Your Profits/Losses = (Closing Level – Initial Level) x stake per penny
 
Scenario 1 BT climbs and the shares spread betting market moves to 205.9p – 206.3p.
Take Your Profit? You may choose to let your trade run or close it, i.e. close your spread bet for a profit. In this case you choose to close your position and sell at 205.9p.
Your Profits/Losses = (Closing Level – Initial Level) x stake per penny
(205.9p – 199.9p) x £15 per penny
6.0p x £15 per penny
Your Profits/Losses = £90.00 profit
 
Scenario 2 BT falls and the financial spread betting market is adjusted and moved to 192.9p – 193.3p.
Time to Limit the Loss? You could opt to keep your trade open or close it to restrict your loss. In this case you opt to close your bet and sell the market at 192.9p.
Your Profits/Losses = (Closing Level – Initial Level) x stake per penny
(192.9p – 199.9p) x £15 per penny
-7.0p x £15 per penny
Your Profits/Losses = -£105.00 loss


Trading Example | Taking a Short Position on BT

Spread betting on the UK telecoms group’s shares to fall

You Now Decide to Buy or Sell BT to go:

  arrow_upward  Higher than 199.9p? or
  arrow_downward  Lower than 199.5p?

Let’s Assume You Choose to Sell   arrow_downward  Lower than 199.5p
You Choose How Much to Risk, Let’s Say You Select £10 per penny
What Happens Next?
  • You will lose £10 for each penny BT increases higher than 199.5p
  • You make a gain of £10 for each penny BT decreases below 199.5p
When Betting on a Market to Decrease Your Profits/Losses = (Initial Level – Closing Level) x stake per penny
 
Scenario 3 BT moves lower and the market is revised and is set at 188.0p – 188.4p.
Lock in Your Profit? At this point, you may decide to leave your bet open or close it and lock in a profit. In this case you choose to settle your bet by buying at 188.4p.
Your Profits/Losses = (Initial Level – Closing Level) x stake per penny
(199.5p – 188.4p) x £10 per penny
11.1p x £10 per penny
Your Profits/Losses = £111.00 profit
 
Scenario 4 BT moves higher and the spread betting market adjusts and moves to 212.0p – 212.4p.
Time to Restrict the Loss?At this point, you may choose to keep your position open or close it, i.e. close your spread bet and limit your losses. In this case you opt to close your trade by buying the market at 212.4p.
Your Profits/Losses = (Initial Level – Closing Level) x stake per penny
(199.5p – 212.4p) x £10 per penny
-12.9p x £10 per penny
Your Profits/Losses = -£129.00 loss


BT Notes:

  • Spread betting market price obtained from InterTrader: 10 January 2012
  • Investors are also able to spread bet on the telecoms group in euros/penny and US dollars/penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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