Glencore Spread Betting Guide

Glencore Spread Betting Guide

Glencore Spread Betting Guide

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


Live Glencore CFD Chart and Prices



Where Can I Spread Bet on Glencore?

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

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How to Spread Bet on Glencore

For example, let’s say you want to financial spread bet on Glencore, you go on a spread trading site, e.g. Financial Spreads, and they are offering the live market price:

Glencore Rolling Daily: 366.1p – 366.6p

Here is an example of how it works:

Spread Betting Market Glencore Rolling Daily
Spread 366.1p – 366.6p
What This Means Now you can take a position on the Glencore Rolling Daily market moving:

  arrow_upward  Above 366.6p, or
  arrow_downward  Below 366.1p

This is a ‘Rolling Daily’ spread betting market and so there is no expiry date for this trade. If you don’t close your trade and the trading session ends then your position will automatically roll over into the next session.

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

For additional information also see how a daily spread bet works.
Points (Units) Traded Spread trades on the Glencore market are made in £x per penny.

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

E.g. if Glencore moves 40p then you would lose or gain 40 times your stake.
Stake per Unit You work out how much you are going to trade per penny, e.g. £1 per penny, £3 per penny, £15 per penny etc.
Simplified Trading Example For example, if you have a stake of £4 per penny and Glencore changes by 28p, you would gain or lose £4 per penny x 28p = £112.


Fully Worked Spread Trading Example | Taking a Long Position on Glencore

Spread betting on the UK share to go higher

You Now Choose Whether to Buy or Sell Glencore to go:

  arrow_upward  Above 366.6p? or
  arrow_downward  Below 366.1p?

Let’s Say You Decide to Go Long   arrow_upward  Above 366.6p
You Decide Your Stake, Let’s Assume You Select £10 per penny
So Now What Happens?
  • You will make a gain of £10 for every penny Glencore pushes above 366.6p
  • Your trade loses £10 for each penny Glencore falls lower than 366.6p
When Spread Betting on a Market to Increase Your Trading Profits (or Losses) = (Closing Price – Opening Price) x stake per penny
 
Trading Example 1 Glencore climbs and the market is revised to 377.6p – 378.1p.
Time to Lock in Your Profit? At this point, you could decide to keep your spread bet open or close it, i.e. close your trade to lock in your profit. In this instance you choose to close your bet by selling the market at 377.6p.
Your Trading Profits (or Losses) = (Closing Price – Opening Price) x stake per penny
(377.6p – 366.6p) x £10 per penny
11.0p x £10 per penny
Your Trading Profits (or Losses) = £110.00 profit
 
Trading Example 2 Glencore pushes lower and the financial spread betting market becomes 353.8p – 354.3p.
Time to Restrict the Loss? You can decide to keep your position open or close it, i.e. close your position to limit your losses. In this case you decide to settle your trade by selling at 353.8p.
Your Trading Profits (or Losses) = (Closing Price – Opening Price) x stake per penny
(353.8p – 366.6p) x £10 per penny
-12.8p x £10 per penny
Your Trading Profits (or Losses) = -£128.00 loss


Fully Worked Trading Example | Selling Glencore

Spread trading on the UK commodities trader to fall in value

You Now Choose to Buy or Sell Glencore to push:

  arrow_upward  Above 366.6p? or
  arrow_downward  Below 366.1p?

Let’s Say You Choose to Go Short   arrow_downward  Below 366.1p
You Select How Much to Risk, Selecting £15 per penny
So What Next?
  • Your trade loses £15 for each penny Glencore increases above 366.1p
  • You will make a gain of £15 for each penny Glencore decreases below 366.1p
If You Are Selling a Market Your Trading Profits (or Losses) = (Opening Price – Closing Price) x stake per penny
 
Trading Example 3 Glencore slips and the market moves to 356.3p – 356.8p.
Close for a Profit? At this point, you could decide to let your trade run or close it, i.e. close your spread bet for a profit. In this instance you decide to settle your bet and buy the market at 356.8p.
Your Trading Profits (or Losses) = (Opening Price – Closing Price) x stake per penny
(366.1p – 356.8p) x £15 per penny
9.3p x £15 per penny
Your Trading Profits (or Losses) = £139.50 profit
 
Trading Example 4 Glencore rises and the spread betting market is revised and changes to 376.5p – 377.0p.
Close and Limit Your Loss?At this point, you could choose to keep your spread bet open or close it, i.e. close your spread bet to limit your losses. In this example you decide to close your trade and buy at 377.0p.
Your Trading Profits (or Losses) = (Opening Price – Closing Price) x stake per penny
(366.1p – 377.0p) x £15 per penny
-10.9p x £15 per penny
Your Trading Profits (or Losses) = -£163.50 loss


Glencore Notes:

  • Financial spread trading price obtained from Financial Spreads as of 4 October 2011
  • You could also choose to spread bet on commodities producer and trader in euros per penny and US dollars per penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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