Microsoft Spread Betting Guide

Microsoft Spread Betting Guide

Microsoft Spread Betting Guide

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


Live Microsoft Chart and Prices



27 October 2017: Microsoft Q3 Beats Analyst Estimates

  • trending_upThe Microsoft share price hits a record $81.20 in after-hours trading
  • trending_upQ3 2017 revenues at $24.5bn, up 12% year-on-year
  • trending_upProfits up 16% to $6.6bn
  • trending_upQ3 cloud computing division saw revenues of $6.9bn, up 14% year-on-year
  • trending_upQ3 “productivity and business processes division” (including Office 365) saw revenues of $8.2bn, up 28%


Where Can I Spread Bet on Microsoft?

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

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How to Spread Bet on Microsoft

As an example, let’s say that you want to trade Microsoft, so you look on a financial spread betting website, e.g. City Index, and are presented with the real-time market price:

Microsoft Rolling Daily: $25.71 – $25.76

Here is what you can expect with a spread bet…

The Spread Trading Market: Microsoft Rolling Daily
The Price: $25.71 – $25.76
How the Market Works: You can bet on the Microsoft Rolling Daily market moving:

  arrow_upward  Higher than $25.76, or
  arrow_downward  Lower than $25.71

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

Note: if the trade is rolled over then you will either be credited or debited for overnight financing depending on whether you are speculating on the market to fall or rise.

To learn more, read our guide to daily spread betting markets.
Traded Units: Bets on the Microsoft shares spread betting market are priced in £x per cent.

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

E.g. if Microsoft changes by 50¢ ($0.50) then you would lose or win 50 multiples of your stake.
Stake: You decide how much you are going to trade per cent, e.g. £1 per cent, £5 per cent, £20 per cent etc.
Staking Example: If, for example, you chose a stake of £4 per cent and Microsoft moves by $0.31 (31¢), you would win / lose £4 per cent x 31¢ = £124.


Worked Trading Example | Taking a Bullish View of Microsoft

Spread trading on the US technology giant’s shares to rise

You Now Work Out Whether to Buy or Sell: Microsoft to move:

  arrow_upward  Higher than $25.76? or
  arrow_downward  Lower than $25.71?

Let’s Say You Want to Go Long:   arrow_upward  Higher than $25.76
You Select How Much to Risk, Choosing: £3 per cent
What Happens Now?
  • You make £3 for every cent ($0.01) Microsoft goes higher than $25.76
  • You will make a loss of £3 for each cent ($0.01) Microsoft moves below $25.76
When Speculating on a Market to Go Up Your P&L = (Settlement Price – Opening Price) x stake per cent
 
Trading Example 1 Microsoft moves higher and the market is revised and changes to $26.15 – $26.20.
Time to Take Your Profit? You may decide to leave your bet open or close it and take your profit. In this case you opt to settle your position by selling the market at $26.15.
Your P&L = (Settlement Price – Opening Price) x stake per cent
($26.15 – $25.76) x £3 per cent
$0.39 x £3 per cent
39¢ x £3 per cent
Your P&L = £117 profit
 
Trading Example 2 Microsoft drops and the spread betting market moves to $25.33 – $25.38.
Close and Restrict the Loss? You may decide to leave your position open or close it in order to restrict your losses. In this example you decide to settle your position and sell the market at $25.33.
Your P&L = (Settlement Price – Opening Price) x stake per cent
($25.33 – $25.76) x £3 per cent
-$0.43 x £3 per cent
-43¢ x £3 per cent
Your P&L = -£129 loss


Trading Example | Going Short of Microsoft

Spread betting on the US tech firm’s shares to fall

You Now Choose Whether to Buy or Sell: Microsoft to push:

  arrow_upward  Higher than $25.76? or
  arrow_downward  Lower than $25.71?

Let’s Assume You Want to Go Short:   arrow_downward  Lower than $25.71
You Select Your Stake Size, Let’s Say You Opt For: £2 per cent
So What Happens Now?
  • You will make a loss of £2 for each cent ($0.01) Microsoft increases above $25.71
  • You make £2 for each cent ($0.01) Microsoft moves lower than $25.71
When Spread Betting on a Market to Fall Your P&L = (Opening Price – Settlement Price) x stake per cent
 
Trading Example 3 Microsoft falls and the financial spread betting market adjusts and moves to $25.22 – $25.27.
Close and Take a Profit? At this point, you could choose to let your spread bet run or close it, i.e. close your trade to lock in your profit. For this example, you choose to settle your bet and buy the market at $25.27.
Your P&L = (Opening Price – Settlement Price) x stake per cent
($25.71 – $25.27) x £2 per cent
$0.44 x £2 per cent
44¢ x £2 per cent
Your P&L = £88 profit
 
Trading Example 4 Microsoft rises and the spread trading market becomes $26.15 – $26.20.
Time to Restrict the Loss?At this point, you can decide to keep your bet open or close it, i.e. close your trade and limit your loss. For this example, you opt to settle your position by buying at $26.20.
Your P&L = (Opening Price – Settlement Price) x stake per cent
($25.71 – $26.20) x £2 per cent
-$0.49 x £2 per cent
-49¢ x £2 per cent
Your P&L = -£98 loss


Microsoft Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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