Burberry Spread Betting Guide

Burberry Spread Betting Guide

Burberry Spread Betting Guide

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


Live Burberry CFD Chart and Prices



Where Can I Spread Bet on Burberry?

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

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How to Spread Bet on Burberry

Let’s suppose that you are interested in speculating on Burberry, you look on a spread trading website, like FinancialSpreads.com, and see they are offering the real time market price:

Burberry Rolling Daily: 1738.1p – 1742.9p

Here is what you need to know about how it works

Market Burberry Rolling Daily
Quote (The Spread) 1738.1p – 1742.9p
How the Market Works Now you can bet on the Burberry Rolling Daily market moving:

  arrow_upward  Higher than 1742.9p, or
  arrow_downward  Lower than 1738.1p

This is a Rolling Daily trade which means that there is no settlement date. If you don’t close your position and the session ends then your trade will roll over into the next trading day.

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

For further details see Rolling Spread Bets.
Trading Units Spread bets on the Burberry market are priced in £x per penny.

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

E.g. if Burberry changes by 30p then you would gain or lose 30 multiples of your stake.
Stake per Unit You choose how much you would like to trade per penny, e.g. £1 per penny, £4 per penny, £20 per penny etc.
Quick Example For example, if you chose a stake of £4 per penny and Burberry moves 34p, you would lose or win £4 per penny x 34p = £136.


Fully Worked Trading Example | Going Long of Burberry

Spread trading on the equity to rise in value

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

  arrow_upward  Higher than 1742.9p? or
  arrow_downward  Lower than 1738.1p?

Let’s Say You Want to Go Long   arrow_downward  Higher than 1742.9p
You Decide How Much to Risk, Selecting £2 per penny
What Happens Now?
  • You will make a gain of £2 for every penny Burberry goes higher than 1742.9p
  • You will make a loss of £2 for each penny Burberry falls lower than 1742.9p
If You Are Betting on a Market to Rise Your Trading Profits (or Losses) = (Settlement Price – Opening Price) x stake per penny
 
Trading Example 1 Burberry increases and the spread trading market is revised and is set at 1803.9p – 1808.7p.
Time to Take Your Profit? At this point, you can opt to let your bet run or close it, i.e. close your position to lock in your profit. In this instance you decide to close your bet by selling at 1803.9p.
Your Trading Profits (or Losses) = (Settlement Price – Opening Price) x stake per penny
(1803.9p – 1742.9p) x £2 per penny
61.0p x £2 per penny
Your Trading Profits (or Losses) = £122.00 profit
 
Trading Example 2 Burberry falls and the market is revised and changes to 1686.3p – 1691.1p.
Limit Your Loss? You can choose to let your bet run or close it in order to restrict your losses. In this case you choose to close your trade and sell the market at 1686.3p.
Your Trading Profits (or Losses) = (Settlement Price – Opening Price) x stake per penny
(1686.3p – 1742.9p) x £2 per penny
-56.6p x £2 per penny
Your Trading Profits (or Losses) = -£113.20 loss


Worked Example | Taking a Bearish View of Burberry

Online spread betting on the retailer’s share price to drop

You Decide to Buy or Sell Burberry going:

  arrow_upward  Higher than 1742.9p? or
  arrow_downward  Lower than 1738.1p?

Let’s Say You Want to Sell   arrow_downward  Lower than 1738.1p
You Choose How Much to Risk, Let’s Say You Choose £1 per penny
Now What Happens?
  • You will make a loss of £1 for each penny Burberry rises higher than 1738.1p
  • You will make a gain of £1 for each penny Burberry goes below 1738.1p
When You Go Short With a Spread Bet Your Trading Profits (or Losses) = (Opening Price – Settlement Price) x stake per penny
 
Trading Example 3 Burberry slips and the financial spread betting market is revised and set at 1642.0p – 1646.8p.
Close and Take Your Profit? At this point, you can decide to keep your spread bet open or close it, i.e. close your spread bet to lock in your profit. For this example, you opt to close your trade by buying at 1646.8p.
Your Trading Profits (or Losses) = (Opening Price – Settlement Price) x stake per penny
(1738.1p – 1646.8p) x £1 per penny
91.3p x £1 per penny
Your Trading Profits (or Losses) = £91.30 profit
 
Trading Example 4 Burberry goes higher and the spread betting market becomes 1818.0p – 1822.8p.
Close and Restrict the Loss?You may decide to let your spread bet run or close it, i.e. close your trade and restrict your loss. In this instance you opt to close your bet by buying the market at 1822.8p.
Your Trading Profits (or Losses) = (Opening Price – Settlement Price) x stake per penny
(1738.1p – 1822.8p) x £1 per penny
-84.7p x £1 per penny
Your Trading Profits (or Losses) = -£84.70 loss


Burberry Notes:

  • Spread betting market taken from FinancialSpreads.com on 19 May 2016
  • Many spread betting firms will also allow you to spread bet on the UK retailer in euros/penny and US dollars/penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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