Google (Alphabet) Spread Betting Guide

Google (Alphabet) Spread Betting Guide

Google (Alphabet) Spread Betting Guide

arrow_forwardLive Google (Alphabet) Chart
arrow_forwardLive Google (Alphabet) Prices
arrow_forwardWhere to Spread Bet on Google (Alphabet)
arrow_forwardHow to Spread Bet on Google (Alphabet)


Live Google (Alphabet) Chart and Prices



25 July 2017: Google Sees Mixed Results

Alphabet shares dropped fell 3% in after hours trading after mixed Q2 results.

Revenues were up a stellar 20% to $21bn for the quarter.

Taking the shine off was a £2.1bn fine from Brussels over competition issues. That meant profits were down 30% for Q2.

Another big issue is that fact that there are two more anti-trust investigations into Google’s practices.

These may take years to resolve, and there will always be appeals, but such big fines will help to dampen the share price.


Where Can I Spread Bet on Google (Alphabet)?

Most spread betting brokers will offer markets on the bigger US stocks including Google (Alphabet).

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How to Spread Bet on Google (Alphabet)

Let’s suppose you want to financial spread bet on Google, so you look on a spread betting website, e.g. City Index, and see they are offering the live spread priced at:

Alphabet (Google) Rolling Daily: $602.50 – $603.84

Here’s an example of how it works…

Spread Trading Market: Alphabet (Google) Rolling Daily
Spread Betting Quote: $602.50 – $603.84
This Means: You can take a position on the Alphabet (Google) Rolling Daily market to push:

  arrow_upward  Higher than $603.84, or
  arrow_downward  Lower than $602.50

This market is a Rolling Daily market which means that there is no expiry date. If you haven’t closed your position and the session ends then your position will automatically roll over to 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 upon whether you are speculating on the market to move higher or lower.

For additional details see guide to daily spread betting markets.
Traded Units: Trades on the Alphabet (Google) market are made in £x per cent.

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

E.g. if Alphabet (Google) moves by 50¢ ($0.50) then you would win / lose 50 multiples of your stake.
Stake (Trade Size): You work out how much you want to risk per cent, e.g. £1 per cent, £3 per cent, £20 per cent etc.
Brief Staking Example: With that in mind, if your stake was £4 per cent and Google changes by $0.20 (20¢), you would lose/win £4 per cent x 20¢ = £80.


Fully Worked Spread Betting Example | Taking a Long Position on Google

Financial spread trading on the search engine’s stock to rise

You Consider Whether to Buy or Sell: Google going:

  arrow_upward  Higher than $603.84? or
  arrow_downward  Lower than $602.50?

Let’s Say You Decide to Go Long:   arrow_upward  Higher than $603.84
You Decide How Much to Risk, Let’s Say You Select: £1 per cent
Now What Happens?
  • You will win £1 for every cent ($0.01) Google pushes higher than $603.84
  • Your trade loses £1 for each cent ($0.01) Alphabet (Google) pushes lower than $603.84
When Spread Betting on a Market to Rise Your Trading Profits (or Losses) = (Closing Price – Opening Price) x stake per cent
 
Scenario 1 Alphabet (Google) climbs and the spread betting market moves to $605.65 – $606.99.
Close and Take a Profit? At this point, you could choose to keep your trade open or close it in order to lock in a profit. In this example you choose to close your bet by selling at $605.65.
Your Trading Profits (or Losses) = (Closing Price – Opening Price) x stake per cent
($605.65 – $603.84) x £1 per cent
$1.81 x £1 per cent
181¢ x £1 per cent
Your Trading Profits (or Losses) = £181 profit
 
Scenario 2 Alphabet (Google) goes lower and the market is revised and moved to $602.18 – $603.52.
Time to Limit the Loss? At this point, you can choose to leave your trade open or close it, i.e. close your spread bet to limit your loss. In this example you decide to close your position and sell the market at $602.18.
Your Trading Profits (or Losses) = (Closing Price – Opening Price) x stake per cent
($602.18 – $603.84) x £1 per cent
-$1.66 x £1 per cent
-166¢ x £1 per cent
Your Trading Profits (or Losses) = -£166 loss


Worked Example | Selling Alphabet (Google)

Financial spread betting on the US firm’s stock to go lower

You Decide to Buy or Sell: Alphabet (Google) to go:

  arrow_upward  Higher than $603.84? or
  arrow_downward  Lower than $602.50?

Let’s Assume You Go Short:   arrow_downward  Lower than $602.50
You Decide Your Stake, Selecting: £1 per cent
What Happens Now?
  • Your trade loses £1 for each cent ($0.01) Alphabet rises above $602.50
  • You will win £1 for each cent ($0.01) Alphabet decreases lower than $602.50
When You Sell a Spread Bet Your Trading Profits (or Losses) = (Opening Price – Closing Price) x stake per cent
 
Scenario 3 Alphabet falls and the shares spread betting market is revised and is set at $599.08 – $600.42.
Take Your Profit? At this point, you could choose to let your trade run or close it and take a profit. In this case you opt to close your bet and buy the market at $600.42.
Your Trading Profits (or Losses) = (Opening Price – Closing Price) x stake per cent
($602.50 – $600.42) x £1 per cent
$2.08 x £1 per cent
208¢ x £1 per cent
Your Trading Profits (or Losses) = £208 profit
 
Scenario 4 Alphabet increases and the financial spread betting market becomes $603.07 – $604.41.
Close and Limit the Loss?You may decide to let your trade run or close it and limit your losses. In this instance you decide to close your bet by buying at $604.41.
Your Trading Profits (or Losses) = (Opening Price – Closing Price) x stake per cent
($602.50 – $604.41) x £1 per cent
-$1.91 x £1 per cent
-191¢ x £1 per cent
Your Trading Profits (or Losses) = -£191 loss


Alphabet Notes:

  • Spread betting prices as per City Index, 9 November 2011
  • Many spread betting firms also allow you to spread bet on the search engine’s stock in euros per cent and dollars per cent

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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