IAG Spread Betting Guide

IAG Spread Betting Guide

IAG Spread Betting Guide

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


Live IAG Chart and Prices



Where Can I Spread Bet on IAG?

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

Company Shares? Shares
Min Stake
Mobile
Apps
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How to Spread Bet on IAG

As an example, let’s imagine that you are interested in financial spread betting on IAG, you look on a spread trading website, such as LCG, and see that they are offering the live spread at:

IAG Rolling Daily: 155.3p – 155.6p

Here is what you need to know about how it works

Spread Trading Market: IAG Rolling Daily
The Spread Trading Price: 155.3p – 155.6p
How This Works: Now you can take a position on the IAG Rolling Daily market moving:

  arrow_upward  Higher than 155.6p, or
  arrow_downward  Lower than 155.3p

This is a ‘Rolling Daily’ market which means that there is no final closing date for this trade. If you decide not to close your trade and the session ends then your position will roll over to the next trading day.

If a trade is rolled over then you will normally either be credited or debited for overnight financing based upon whether you are speculating on the market to move lower or higher.

To learn more, please read our guide to daily spread bets.
Traded Units: Bets on the IAG market are made in £x per penny.

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

E.g. if IAG changes by 45p then you would win / lose 45 times your stake.
Stake per Unit: You work out your stake per penny, e.g. £1 per penny, £5 per penny, £15 per penny etc.
Simplified Trading Example: With that in mind, if your stake was £4 per penny and IAG moves by 22p, you would win/lose £4 per penny x 22p = £88.


Worked Example | Buying International Consolidated Airlines

Online spread betting on the equity to increase in value

You Decide Whether to Buy or Sell: International Consolidated Airlines to move:

  arrow_upward  Higher than 155.6p? or
  arrow_downward  Lower than 155.3p?

Let’s Say You Choose to Go Long:   arrow_upward  Higher than 155.6p
You Select Your Stake, Let’s Assume You Select: £15 per penny
So What Happens Now?
  • You make a gain of £15 for every penny International Consolidated Airlines rises above 155.6p
  • You lose £15 for each penny International Consolidated Airlines pushes lower than 155.6p
If You Are Spread Betting on a Market to Increase Your P&L = (Settlement Level – Opening Level) x stake per penny
 
Trading Situation 1 International Consolidated Airlines pushes higher and the market changes to 161.0p – 161.3p.
Close for a Profit? You could opt to keep your trade open or close it, i.e. close your position for a profit. For this example, you opt to close your bet by selling the market at 161.0p.
Your P&L = (Settlement Level – Opening Level) x stake per penny
(161.0p – 155.6p) x £15 per penny
5.4p x £15 per penny
Your P&L = £81.00 profit
 
Trading Situation 2 IAG moves lower and the financial spread betting market is revised and set at 150.5p – 150.8p.
Close and Restrict the Loss? You can decide to keep your bet open or close it, i.e. close your trade and restrict your losses. For this example, you decide to close your position and sell at 150.5p.
Your P&L = (Settlement Level – Opening Level) x stake per penny
(150.5p – 155.6p) x £15 per penny
-5.1p x £15 per penny
Your P&L = -£76.50 loss


Spread Betting Example | Taking a Bearish View of IAG

Financial spread trading on the equity to move down in value

You Select Whether to Go Long or Short: IAG to push:

  arrow_upward  Higher than 155.6p? or
  arrow_downward  Lower than 155.3p?

Let’s Assume You Sell:   arrow_downward  Lower than 155.3p
You Decide Your Stake Size, Let’s Say You Choose: £10 per penny
What Next?
  • You lose £10 for each penny IAG pushes above 155.3p
  • You make a gain of £10 for each penny IAG goes lower than 155.3p
If You Are Spread Betting on a Market to Fall Your P&L = (Opening Level – Settlement Level) x stake per penny
 
Trading Situation 3 International Consolidated Airlines drops and the spread betting market is revised and moved to 146.0p – 146.3p.
Take a Profit? You may decide to keep your position open or close it, i.e. close your position to lock in a profit. In this case you decide to close your trade and buy the market at 146.3p.
Your P&L = (Opening Level – Settlement Level) x stake per penny
(155.3p – 146.3p) x £10 per penny
9.0p x £10 per penny
Your P&L = £90.00 profit
 
Trading Situation 4 IAG rises and the spread trading market becomes 163.3p – 163.6p.
Limit Your Loss?You could decide to leave your spread bet open or close it and restrict your loss. In this instance you decide to settle your bet by buying the market at 163.6p.
Your P&L = (Opening Level – Settlement Level) x stake per penny
(155.3p – 163.6p) x £10 per penny
-8.3p x £10 per penny
Your P&L = -£83.00 loss


International Consolidated Airlines Notes:

  • Financial spread betting quote from LCG: 27 September 2011
  • You can also financial spread bet on IAG in euros per penny and dollars per penny
  • You can also spread bet with DFBs on UK shares like Burberry, Dixons, EasyJet etc.

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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