JP Morgan Spread Betting Guide

JP Morgan Spread Betting Guide

JP Morgan Spread Betting Guide

arrow_forwardLive JP Morgan Chart
arrow_forwardLive JP Morgan Prices
arrow_forwardWhere to Spread Bet on JP Morgan
arrow_forwardHow to Spread Bet on JP Morgan


Live JP Morgan Chart and Prices



Where Can I Spread Bet on JP Morgan?

Most spread betting brokers will offer markets on the bigger US stocks including JP Morgan.

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How to Spread Bet on JP Morgan

For example, let’s suppose you are thinking of spread trading on JP Morgan, you look at a financial spread betting site, like Spreadex, and get the real-time market at:

JP Morgan Rolling Daily: $33.53 – $33.60

Here’s what you need to know about how it works

The Spread Betting Market JP Morgan Rolling Daily
Quote (The Spread) $33.53 – $33.60
This Means That Now you can speculate on the JP Morgan Rolling Daily market going:

  arrow_upward  Higher than $33.60, or
  arrow_downward  Lower than $33.53

This spread betting market is a Rolling Daily market which means that there is no final closing date. If you decide not to close your trade and the session ends then your trade will roll over into the next session.

If a trade does roll over then you will either be credited or charged for overnight financing depending on whether you are betting on the market to move higher or lower.

Also see guide to daily spread betting markets.
Points (Units) Traded Financial spread bets on the JP Morgan market are made in £x per cent.

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

E.g. if JP Morgan moves 40¢ ($0.40) then you would win/lose 40 multiples of your stake.
Stake Size You work out what to risk per cent, e.g. £1 per cent, £3 per cent, £15 per cent etc.
Quick Staking Exercise If your stake is £3 per cent and JP Morgan moves by $0.24 (24¢), you would lose or gain £3 per cent x 24¢ = £72.


Spread Betting Example | Buying JP Morgan

Financial spread trading on the US bank’s stock to rise

You Decide Whether to Buy or Sell JP Morgan to go:

  arrow_upward  Higher than $33.60? or
  arrow_downward  Lower than $33.53?

You Might Decide to Go Long   arrow_upward  Higher than $33.60
You Select How Much to Risk, Selecting £2 per cent
So What Happens Now?
  • You will win £2 for every cent ($0.01) JP Morgan moves higher than $33.60
  • You will lose £2 for each cent ($0.01) JP Morgan moves below $33.60
If You Are Speculating on a Market to Go Up Your Profits/Losses = (Settlement Price – Opening Price) x stake per cent
 
Example 1 JP Morgan rises and the financial spread betting market is revised and is set at $34.27 – $34.34.
Time to Lock in Your Profit? You may choose to leave your trade open or close it, i.e. close your position for a profit. In this case you opt to close your trade by selling the market at $34.27.
Your Profits/Losses = (Settlement Price – Opening Price) x stake per cent
($34.27 – $33.60) x £2 per cent
$0.67 x £2 per cent
67¢ x £2 per cent
Your Profits/Losses = £134 profit
 
Example 2 JP Morgan drops and the spread betting market is revised and set at $33.01 – $33.08.
Limit Your Loss? At this point, you can choose to leave your trade open or close it and limit your loss. In this instance you opt to close your trade and sell at $33.01.
Your Profits/Losses = (Settlement Price – Opening Price) x stake per cent
($33.01 – $33.60) x £2 per cent
-$0.59 x £2 per cent
-59¢ x £2 per cent
Your Profits/Losses = -£118 loss


Fully Worked Spread Trading Example | Taking a Short Position on JP Morgan

Spread betting on the US bank’s stock to fall

You Now Decide Whether to Go Long or Short JP Morgan to push:

  arrow_upward  Higher than $33.60? or
  arrow_downward  Lower than $33.53?

You Might Choose to Go Short   arrow_downward  Lower than $33.53
You Decide Your Stake, Let’s Say You Opt For £3 per cent
What Happens Next?
  • You will lose £3 for each cent ($0.01) JP Morgan increases higher than $33.53
  • You will win £3 for each cent ($0.01) JP Morgan falls below $33.53
When You Sell a Market Your Profits/Losses = (Opening Price – Settlement Price) x stake per cent
 
Example 3 JP Morgan moves lower and the spread betting market adjusts and moves to $33.11 – $33.18.
Close and Take a Profit? At this point, you may choose to keep your bet open or close it to take your profit. In this example you opt to close your bet by buying the market at $33.18.
Your Profits/Losses = (Opening Price – Settlement Price) x stake per cent
($33.53 – $33.18) x £3 per cent
$0.35 x £3 per cent
35¢ x £3 per cent
Your Profits/Losses = £105 profit
 
Example 4 JP Morgan increases and the spread trading market is revised and moved to $33.77 – $33.84.
Close and Restrict the Loss?At this point, you can choose to keep your spread bet open or close it, i.e. close your trade and restrict your loss. For this example, you choose to settle your bet by buying at $33.84.
Your Profits/Losses = (Opening Price – Settlement Price) x stake per cent
($33.53 – $33.84) x £3 per cent
-$0.31 x £3 per cent
-31¢ x £3 per cent
Your Profits/Losses = -£93 loss


JP Morgan Notes:

  • Financial spread trading prices obtained from Spreadex, 9 November 2011
  • You could also trade on the US bank in euros per cent and dollars per cent

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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