FTSE 100 Spread Betting Guide

FTSE 100 Spread Betting Guide

FTSE 100 Spread Betting Guide

arrow_forwardLive FTSE 100 Chart
arrow_forwardLive FTSE 100 Prices
arrow_forwardWhere to Spread Bet on FTSE 100
arrow_forwardHow to Spread Bet on FTSE 100
arrow_forwardWhere to Spread Bet on UK Shares
arrow_forwardGuides to Trading UK Companies

Whilst you can spread bet on individual UK listed shares, a far more popular trade is the FTSE 100 index.

You can also trade the FTSE 250, i.e. an index of 250 mid-cap UK shares, but it is much less popular than the FTSE 100 index.

In this case we walk you through the basics of trading the FTSE 100 and individual shares listed on the London stock exchange.

Readers should note that in spread betting, the FTSE 100 DAX 30 is also known as the ‘UK 100’.


Live FTSE 100 Chart and Prices


What is the UK 100? (aka FTSE 100)

The share index of the UK’s 100 largest stocks.

The UK 100 index represents around 80% of the London Stock Exchange’s market capital. All companies listed on the UK 100 must include PLC in their name, indicating they are public limited companies. Trading hours are from 08:00 to 16:30 (local UK time).


Where Can I Spread Bet on the FTSE 100?

A number of regulated spread betting brokers offer live prices & charts on stock index markets like the FTSE 100.

See the stock market comparison table below.


FTSE 100 Spread Betting Comparison

Company Index Min
Stake
UK
100
Spread
Germany
30
Spread
Wall
Street
Spread
S&P
500
Spread
NASDAQ
100
Spread
Japan
255
Spread
Apply
Financial Spreads Review £0.50 0.8 (5) 1 (2) 1 (4) 3 0.5 8 Apply
City Index Review £1 1 (+) 1 (+) 1.6 (+) 6 1 (+) 8 (+) Apply
ETX Capital Review £0.50 1 (2,6) 1 (2,6) 1 (2) 5 1 (2) Variable Apply
IG Review £1-5 1 (4) 1 (5) 1.8 (5.8) 5 (9) 1 (3) 8 (30) Apply
InterTrader Review £1 Variable Variable Variable Variable Variable Variable Apply

You can also trade the FTSE 250 with IG and City Index.


How to Spread Bet on FTSE 100

For example, let’s assume you are interested in speculating on the FTSE 100, so you look at a financial spread betting site, e.g. Financial Spreads, and see the market priced at:

FTSE 100 Rolling Daily: 5452.0 – 5453.0

Here’s how it works…

The Market: FTSE 100 Rolling Daily
The Spread Betting Price: 5452.0 – 5453.0
This Means: Now you can take a position on the FTSE 100 Rolling Daily market to go:

  arrow_upward  Above 5453.0, or
  arrow_downward  Below 5452.0

This is a Rolling Daily spread betting market and so there is no closing date. If you haven’t closed your trade and the trading session ends then your position will automatically roll over to the next trading day.

If a trade is rolled over then you will normally either be charged or receive interest for overnight financing depending upon whether you are speculating on the market to rise or fall.

For further information, also see what is a daily spread bet?
Units Traded: Trades on the FTSE 100 market are priced in £x per point.

Where a point is 1 point of the index’s price movement.

E.g. if the FTSE 100 moves by 75 points then you would win / lose 75 multiples of your stake.
Stake Size per Unit: You choose how much you are going to trade per point, e.g. £1 per point, £3 per point, £5 per point, £10 per point etc.
Staking Example: As an example, if you have a stake of £5 per point and the FTSE 100 moves 22 points, you would win / lose £5 per point x 22 points = £110.


Fully Worked Spread Betting Example | Taking a Bullish View of the FTSE 100

Spread betting on the stock market index to increase

You Choose Whether to Buy or Sell: The FTSE 100 moving:

  arrow_upward  Above 5453.0? or
  arrow_downward  Below 5452.0?

Let’s Say You Buy:   arrow_downward  Above 5453.0
You Decide How Much to Risk, Choosing: £3 per point
So Now What?
  • You win £3 for each point the FTSE 100 moves higher than 5453.0
  • You lose £3 for every point the FTSE 100 goes below 5453.0
When You Go Long With a Spread Bet Your Profits (or Losses) = (Closing Price – Opening Price) x stake per point
 
Example 1 The FTSE 100 moves higher and the financial spread betting market is moved to 5491.2 – 5492.2.
Lock in Your Profit? At this point, you can opt to let your spread bet run or close it, i.e. close your spread bet to lock in your profit. In this case you decide to close your bet and sell the market at 5491.2.
Your Profits (or Losses) = (Closing Price – Opening Price) x stake per point
(5491.2 – 5453.0) x £3 per point
38.2 points x £3 per point
Your Profits (or Losses) = £114.60 profit
 
Example 2 The FTSE 100 goes lower and the spread betting market becomes 5420.3 – 5421.3.
Close and Limit Your Loss? You can choose to leave your trade open or close it, i.e. close your spread bet to restrict your losses. In this example you opt to close your trade by selling the market at 5420.3.
Your Profits (or Losses) = (Closing Price – Opening Price) x stake per point
(5420.3 – 5453.0) x £3 per point
-32.7 points x £3 per point
Your Profits (or Losses) = -£98.10 loss


Worked Example | Selling the FTSE 100

Spread betting on the stock market index to decrease

You Decide Whether to Go Long or Short: The FTSE 100 going:

  arrow_upward  Above 5453.0? or
  arrow_downward  Below 5452.0?

Let’s Assume You Decide to Go Short:   arrow_downward  Below 5452.0
You Select Your Stake, Let’s Assume You Select: £2 per point
What Happens Now?
  • Your spread bet loses £2 for every point the FTSE 100 rises above 5452.0
  • Your spread bet gains £2 for every point the FTSE 100 moves below 5452.0
When Selling a Market Your Profits (or Losses) = (Opening Price – Closing Price) x stake per point
 
Example 3 The FTSE 100 falls and the spread betting market adjusts and moves to 5403.3 – 5404.3.
Close and Take a Profit? At this point, you may opt to leave your position open or close it in order to lock in a profit. In this instance you choose to close your position and buy at 5404.3.
Your Profits (or Losses) = (Opening Price – Closing Price) x stake per point
(5452.0 – 5404.3) x £2 per point
47.7 points x £2 per point
Your Profits (or Losses) = £95.40 profit
 
Example 4 The FTSE 100 rises and the price for the FTSE 100 rolling daily market is revised and changes to 5491.9 – 5492.9.
Close and Restrict the Loss?At this point, you could choose to let your trade run or close it, i.e. close your trade to restrict your losses. In this instance you opt to close your bet by buying the market at 5492.9.
Your Profits (or Losses) = (Opening Price – Closing Price) x stake per point
(5452.0 – 5492.9) x £2 per point
-40.9 points x £2 per point
Your Profits (or Losses) = -£81.80 loss


FTSE 100 Notes:

  • Online spread betting market price from Financial Spreads on 9 November 2011
  • Many spread betting firms will also give you the option of financial spread betting on the FTSE 100 in euros per point and US dollars per point

Guide to Spread Betting on FTSE 100 Shares

To help you we have created hundreds of individual equities guides. Each guide answers key questions such as:
  • Where can I spread bet on the UK company?
  • Where can I find live charts and prices for that UK company?
  • How to spread bet on the share to go up / down?
For a guide to a particular UK company, simply click on the relevant link below.

Company Code Ticker Live Chart Live Prices Guide
AB Foods ABF-L Chart Prices Guide
Anglo American AAL-L Chart Prices Guide
Antofagasta ANTO-L Chart Prices Guide
AstraZeneca AZN-L Chart Prices Guide
Barclays BARC-L Chart Prices Guide
BHP Billiton BLT-L Chart Prices Guide
BP BP-L Chart Prices Guide
BT BT-A-L Chart Prices Guide
Burberry BRBY-L Chart Prices Guide
Dixons Retail DC-L Chart Prices Guide
EasyJet EZJ-L Chart Prices Guide
Glencore GLEN-L Chart Prices Guide
GSK GSK-L Chart Prices Guide
Hargreaves Lansdown HL-L Chart Prices Guide
HSBC HSBA-L Chart Prices Guide
IAG IAG-L Chart Prices Guide
Ladbrokes LCL-L Chart Prices Guide
Lloyds LLOY-L Chart Prices Guide
M&S MKS-L Chart Prices Guide
Moneysupermarket MONY-L Chart Prices Guide
Ocado OCDO-L Chart Prices Guide
PaddyPower Betfair PPB.IR Chart Prices Guide
RBS RBS-L Chart Prices Guide
Rio Tinto RIO-L Chart Prices Guide
Rolls Royce RR-L Chart Prices Guide
Royal Mail RMG-L Chart Prices Guide
Sainsburys SBRY-L Chart Prices Guide
Shell RDSA-L Chart Prices Guide
Sky SKY-L Chart Prices Guide
Tesco TSCO-L Chart Prices Guide
Tullow Oil TLW-L Chart Prices Guide
Vodafone VOD-L Chart Prices Guide



Where to Spread Bet on UK Companies

You can trade a selection of leading UK firms with:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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