Exxon Mobil Spread Betting Guide

Exxon Mobil Spread Betting Guide

Exxon Mobil Spread Betting Guide

arrow_forwardLive Exxon Mobil Chart
arrow_forwardLive Exxon Mobil Prices
arrow_forwardWhere to Spread Bet on Exxon Mobil
arrow_forwardHow to Spread Bet on Exxon Mobil


Live Exxon Mobil Chart and Prices



15 September 2017: Exxon Mobile and Chevron Tracking Crude Oil Higher

It’s interesting to see how well the Exxon Mobile and Chevron prices have correlated with the higher crude oil prices since the start of September:

Exxon Mobile 1 Day Chart
Exxon Mobile 1 Day Chart


Chevron 1 Day Chart
Chevron 1 Day Chart


US Crude Oil 1 Day Chart
US Crude Oil 1 Day Chart


Of course, that the big oil firms do well when the price of oil rises should not come as a surprise.

And from a spread betting point of view, in many ways, it’s more tempting to trade the US oil giants as a proxy for crude.

The spread is certainly tighter if you trade the stock.

The technical analysis is also easier. US stocks trade as rolling spread bets where as crude oil is offered as a futures market, i.e. you have the usual annoyance with futures markets and the historical data being very limited.

At the same time though, in financial spread betting, the American shares are priced in ¢ and you spread bet on every 1¢ the share price moves.

With Chevron trading around 11,445¢ ($114.45) if the stock moves just 5%, which it can easily do, that’s a 550 point move.

The Exxon Mobile share price is trading around 7,980¢ ($79.80) and so, even with the lower price, a 5% move is still 400pts.

These kinds of moves make trading the stock prohibitive unless you can trade with very small stakes or you have very deep pockets.


Where Can I Spread Bet on Exxon Mobil?

Most spread betting brokers will offer markets on the bigger US stocks including Exxon Mobil.

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How to Spread Bet on Exxon Mobil

As an example, let’s say that you want to take a position on Exxon Mobil, you look on a spread trading website, e.g. FinancialSpreads, and see that they are offering the real time spread of:

Exxon Mobil Rolling Daily: $80.73 – $80.82

Here’s how the trade works

Spread Trading Market Exxon Mobil Rolling Daily
Price (Spread) $80.73 – $80.82
How the Market Works You can bet on the Exxon Mobil Rolling Daily market to move:

  arrow_upward  Above $80.82, or
  arrow_downward  Below $80.73

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

If a trade does roll over then you will normally either be charged or credited for overnight financing depending upon the direction of your position.

See guide to daily spread betting markets to learn more.
Points (Units) Traded Spread bets on the Exxon Mobil market are made in £x per cent.

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

E.g. if Exxon Mobil moves 40¢ ($0.40) then you would win / lose 40 multiples of your stake.
Stake per Unit You decide your stake per cent, e.g. £2 per cent, £4 per cent, £10 per cent etc.
Brief Staking Example With that in mind, if you have a stake of £5 per cent and Exxon Mobil moves by $0.23 (23¢), you would lose/win £5 per cent x 23¢ = £115.


Fully Worked Spread Betting Example | Taking a Bullish View of Exxon Mobil

Spread betting on the US oil firm’s shares to rise in value

You Now Work Out Whether to Buy or Sell Exxon Mobil going:

  arrow_upward  Above $80.82? or
  arrow_downward  Below $80.73?

Let’s Say You Choose to Buy   arrow_upward  Above $80.82
You Select Your Stake, Let’s Say You Opt For £2 per cent
So What Happens Next?
  • You win £2 for every cent ($0.01) Exxon Mobil moves above $80.82
  • You lose £2 for each cent ($0.01) Exxon Mobil decreases lower than $80.82
If You Are Going Long of a Market Your Trading Profits/Losses = (Final Level – Initial Level) x stake per cent
 
Trading Situation 1 Exxon Mobil goes higher and the spread trading market becomes $81.55 – $81.64.
Time to Lock in Your Profit? You can opt to leave your trade open or close it, i.e. close your spread bet to lock in a profit. In this example you choose to close your trade by selling at $81.55.
Your Trading Profits/Losses = (Final Level – Initial Level) x stake per cent
($81.55 – $80.82) x £2 per cent
$0.73 x £2 per cent
73¢ x £2 per cent
Your Trading Profits/Losses = £146 profit
 
Trading Situation 2 Exxon Mobil slips and the financial spread betting market is adjusted and moved to $80.17 – $80.26.
Limit the Loss? You may opt to leave your position open or close it, i.e. close your trade and limit your loss. In this instance you decide to settle your position and sell at $80.17.
Your Trading Profits/Losses = (Final Level – Initial Level) x stake per cent
($80.17 – $80.82) x £2 per cent
-$0.65 x £2 per cent
-65¢ x £2 per cent
Your Trading Profits/Losses = -£130 loss


Worked Example | Selling Exxon Mobil

Financial spread betting on the oil and gas firm’s share to go down

You Now Consider Whether to Go Long or Short Exxon Mobil to push:

  arrow_upward  Above $80.82? or
  arrow_downward  Below $80.73?

Let’s Assume You Sell   arrow_downward  Below $80.73
You Choose How Much to Risk, Let’s Say You Choose £1 per cent
Now What?
  • You lose £1 for each cent ($0.01) Exxon Mobil increases above $80.73
  • You win £1 for each cent ($0.01) Exxon Mobil moves below $80.73
When You Go Short With a Spread Bet Your Trading Profits/Losses = (Initial Level – Final Level) x stake per cent
 
Trading Situation 3 Exxon Mobil moves lower and the market is revised to $79.59 – $79.68.
Time to Lock in a Profit? You may opt to let your trade run or close it, i.e. close your position to lock in a profit. For this example, you choose to close your trade and buy at $79.68.
Your Trading Profits/Losses = (Initial Level – Final Level) x stake per cent
($80.73 – $79.68) x £1 per cent
$1.05 x £1 per cent
105¢ x £1 per cent
Your Trading Profits/Losses = £105 profit
 
Trading Situation 4 Exxon Mobil rises and the spread betting market is adjusted to $81.58 – $81.67.
Time to Restrict Your Loss?At this point, you may decide to keep your bet open or close it in order to restrict your losses. For this example, you opt to settle your trade and buy the market at $81.67.
Your Trading Profits/Losses = (Initial Level – Final Level) x stake per cent
($80.73 – $81.67) x £1 per cent
-$0.94 x £1 per cent
-94¢ x £1 per cent
Your Trading Profits/Losses = -£94 loss


Exxon Mobil Notes:

  • Spread trading prices from FinancialSpreads on 6 December 2011
  • Many companies will also let you speculate on the oil and gas multinational in euros per cent and US dollars per cent
  • Financial spread trading also allows you to gain access to a large range of other asset classes, for additional information also see:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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