Dixons Retail Spread Betting Guide

Dixons Retail Spread Betting Guide

Dixons Retail Spread Betting Guide

arrow_forwardLive Dixons Retail Chart
arrow_forwardLive Dixons Retail Prices
arrow_forwardWhere to Spread Bet on Dixons Retail
arrow_forwardHow to Spread Bet on Dixons Retail


Live Dixons Retail CFD Chart and Prices



Where Can I Spread Bet on Dixons Retail?

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

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How to Spread Bet on Dixons Retail

Let’s suppose that you are thinking of speculating on Dixons Retail, so you look at a spread trading site, such as City Index, and see they are offering the real-time spread:

Dixons Retail Rolling Daily: 13.3p – 14.0p

Here’s how the trade works.

Spread Betting Market Dixons Retail Rolling Daily
The Spread Betting Price 13.3p – 14.0p
How the Spread Works You can bet on the Dixons Retail Rolling Daily market to go:

  arrow_upward  Above 14.0p, or
  arrow_downward  Below 13.3p

This is a ‘Rolling Daily’ market which means that there is no closing date for this trade. If you haven’t closed your trade and the trading session ends then your trade will automatically roll over to the next trading session.

Note that if a trade is rolled over then you will normally either be charged or credited for overnight financing based upon whether you are betting on the market to go down or up.

For more information, please read our guide to daily spread betting.
Units (Points) Traded Spread betting trades on the Dixons Retail market are made in £x per penny.

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

E.g. if Dixons Retail moves by 55p then you would gain or lose 55 multiples of your stake.
Stake Size per Unit You choose how much you would like to trade per penny, e.g. £1 per penny, £5 per penny, £20 per penny etc.
Short Staking Example If, as an example, you have a stake of £3 per penny and Dixons Retail moves 27p, you would win or lose £3 per penny x 27p = £81.


Fully Worked Trading Example | Taking a Bullish View of Dixons Retail

Spread betting on the UK equity to move up in value

You Now Choose Whether to Buy or Sell Dixons Retail moving:

  arrow_upward  Above 14.0p? or
  arrow_downward  Below 13.3p?

Let’s Say You Choose to Go Long   arrow_upward  Above 14.0p
You Decide Your Stake, Let’s Say You Choose £25 per penny
So What Next?
  • You gain £25 for every penny Dixons Retail rises above 14.0p
  • You lose £25 for each penny Dixons Retail decreases below 14.0p
If You Are Buying a Spread Bet Your Profits/Losses = (Closing Price – Opening Price) x stake per penny
 
Scenario 1 Dixons Retail increases and the spread betting market moves to 16.8p – 17.5p.
Time to Take Your Profit? You can choose to let your bet run or close it and take your profit. In this instance you decide to close your trade by selling the market at 16.8p.
Your Profits/Losses = (Closing Price – Opening Price) x stake per penny
(16.8p – 14.0p) x £25 per penny
2.8p x £25 per penny
Your Profits/Losses = £70.00 profit
 
Scenario 2 Dixons Retail pushes lower and the spread trading market adjusts and moves to 10.8p – 11.5p.
Limit the Loss? At this point, you can decide to leave your bet open or close it, i.e. close your trade and restrict your losses. In this case you choose to close your trade and sell at 10.8p.
Your Profits/Losses = (Closing Price – Opening Price) x stake per penny
(10.8p – 14.0p) x £25 per penny
-3.2p x £25 per penny
Your Profits/Losses = -£80.00 loss


Worked Example | Taking a Short Position on Dixons Retail

Financial spread trading on the UK equity to move lower

You Choose Whether to Buy or Sell Dixons Retail to push:

  arrow_upward  Above 14.0p? or
  arrow_downward  Below 13.3p?

Let’s Assume You Want to Sell   arrow_downward  Below 13.3p
You Choose How Much to Risk, Selecting £25 per penny
What Happens Next?
  • You lose £25 for each penny Dixons Retail goes above 13.3p
  • You gain £25 for each penny Dixons Retail moves below 13.3p
If You Are Spread Betting on a Market to Fall Your Profits/Losses = (Opening Price – Closing Price) x stake per penny
 
Scenario 3 Dixons Retail moves lower and the market becomes 10.2p – 10.9p.
Close and Take Your Profit? You can choose to leave your position open or close it for a profit. In this instance you choose to close your position by buying at 10.9p.
Your Profits/Losses = (Opening Price – Closing Price) x stake per penny
(13.3p – 10.9p) x £25 per penny
2.4p x £25 per penny
Your Profits/Losses = £60.00 profit
 
Scenario 4 Dixons Retail pushes higher and the financial spread betting market is revised to 15.4p – 16.1p.
Time to Limit Your Loss?You could choose to let your bet run or close it and restrict your loss. In this case you choose to close your position and buy at 16.1p.
Your Profits/Losses = (Opening Price – Closing Price) x stake per penny
(13.3p – 16.1p) x £25 per penny
-2.8p x £25 per penny
Your Profits/Losses = -£70.00 loss


Dixons Retail Notes:

  • Financial spread trading price as per Financial Spreads on 20 January 2012
  • Many spread betting firms also allow you to trade on Dixons Retail in euros per penny and dollars per penny
  • In addition, spread betting also allows you to speculate on a wide variety of other financial markets, for additional details also read:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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