PaddyPower Betfair Spread Betting Guide

PaddyPower Betfair Spread Betting Guide

PaddyPower Betfair Spread Betting Guide

arrow_forwardLive PaddyPower Betfair Chart
arrow_forwardLive PaddyPower Betfair Prices
arrow_forwardWhere to Spread Bet on PaddyPower Betfair
arrow_forwardHow to Spread Bet on PaddyPower Betfair


Live PaddyPower Betfair Chart and Prices



Where Can I Spread Bet on PaddyPower Betfair?

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

navigate_beforeComparison Scroll navigate_next
Company Shares? Shares
Min Stake
Mobile
Apps
Guaranteed Stop Free If Not Triggered? Inactivity Fee Trading Offer Apply
Financial Spreads Review check_box £0.50 check_boxiOS
check_boxAndroid
check_box £0 check_box Apply

Review
City Index Review check_box £1 check_boxiOS
check_boxAndroid
cancel £0 cancel Apply

Review
ETX Capital Review check_box £0.50 check_boxiOS
check_boxAndroid
cancel £15 cancel Apply

Review
IG Review check_box £1-5 check_boxiOS
check_boxAndroid
check_boxWindows
check_box £12 cancel Apply

Review


How to Spread Bet on PaddyPower Betfair

As an example, let’s imagine you are interested in spread trading on PaddyPower Betfair, you look on a spread betting site, like City Index, and get the real time spread at:

PaddyPower Betfair Rolling Daily: 893.8p – 899.2p

This is an example of how it works

Market PaddyPower Betfair Rolling Daily
The Spread Betting Price 893.8p – 899.2p
How This Works You can take a position on the PaddyPower Betfair Rolling Daily market to go:

  arrow_upward  Above 899.2p, or
  arrow_downward  Below 893.8p

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

Note that if a trade rolls over then you will either pay or receive interest for overnight financing depending on whether you are speculating on the market to go up or down.

For further information, please read our “guide to daily spread betting“.
Units Traded Spread bets on the PaddyPower Betfair market are made in £x per penny.

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

E.g. if PaddyPower Betfair moves 55p then you would win / lose 55 multiples of your stake.
Stake You choose how much you are going to stake per penny, e.g. £2 per penny, £4 per penny, £10 per penny etc.
Short Staking Example If you chose a stake of £3 per penny and PaddyPower Betfair moves by 29p, you would gain or lose £3 per penny x 29p = £87.


Fully Worked Trading Example | Taking a Long Position on PaddyPower Betfair

Spread betting on the UK and Ireland bookmaker’s shares to rise

You Decide Whether to Go Long or Short PaddyPower Betfair to push:

  arrow_upward  Above 899.2p? or
  arrow_downward  Below 893.8p?

You Might Decide to Go Long   arrow_upward  Above 899.2p
You Choose Your Stake Size, Let’s Say You Choose £3 per penny
So Now What?
  • You will make a gain of £3 for every penny PaddyPower Betfair pushes above 899.2p
  • Your trade loses £3 for each penny PaddyPower Betfair pushes below 899.2p
When Betting on a Market to Increase Your P/L = (Final Value – Initial Value) x stake per penny
 
Situation 1 PaddyPower Betfair climbs and the spread trading market is revised and is set at 928.4p – 933.8p.
Time to Take Your Profit? At this point, you can decide to leave your bet open or close it, i.e. close your position for a profit. For this example, you opt to settle your position by selling at 928.4p.
Your P/L = (Final Value – Initial Value) x stake per penny
(928.4p – 899.2p) x £3 per penny
29.2p x £3 per penny
Your P/L = £87.60 profit
 
Situation 2 PaddyPower Betfair goes lower and the spread betting market is moved to 874.5p – 879.9p.
Close and Limit Your Loss? You can choose to let your trade run or close it and restrict your loss. In this case you decide to close your trade and sell the market at 874.5p.
Your P/L = (Final Value – Initial Value) x stake per penny
(874.5p – 899.2p) x £3 per penny
-24.7p x £3 per penny
Your P/L = -£74.10 loss


Trading Example | Going Short of PaddyPower Betfair

Spread trading on the equity to move lower

You Now Choose to Go Long or Short PaddyPower Betfair to move:

  arrow_upward  Above 899.2p? or
  arrow_downward  Below 893.8p?

Let’s Say You Choose to Sell   arrow_downward  Below 893.8p
You Select How Much to Risk, Opting for £5 per penny
What Next?
  • Your trade loses £5 for each penny PaddyPower Betfair moves above 893.8p
  • You will make a gain of £5 for each penny PaddyPower Betfair pushes lower than 893.8p
If You Are Going Short of a Market Your P/L = (Initial Value – Final Value) x stake per penny
 
Situation 3 PaddyPower Betfair slips and the market is revised and changes to 862.3p – 867.7p.
Take a Profit? You may choose to keep your bet open or close it, i.e. close your spread bet to lock in your profit. In this case you decide to close your position and buy at 867.7p.
Your P/L = (Initial Value – Final Value) x stake per penny
(893.8p – 867.7p) x £5 per penny
26.1p x £5 per penny
Your P/L = £130.50 profit
 
Situation 4 PaddyPower Betfair pushes higher and the financial spread betting market is adjusted and moved to 910.5p – 915.9p.
Limit the Loss?You can choose to keep your trade open or close it, i.e. close your position and restrict your losses. In this case you opt to settle your bet by buying at 915.9p.
Your P/L = (Initial Value – Final Value) x stake per penny
(893.8p – 915.9p) x £5 per penny
-22.1p x £5 per penny
Your P/L = -£110.50 loss


PaddyPower Betfair Notes:

  • Spread trading market obtained from LCG, 21 March 2011
  • Many spread betting companies also allow you to trade on the bookmaker in euros/penny and dollars/penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

Leave a Reply

Be the First to Comment!

Notify of
wpDiscuz