Rio Tinto Spread Betting Guide

Rio Tinto Spread Betting Guide

Rio Tinto Spread Betting Guide

arrow_forwardLive Rio Tinto Chart
arrow_forwardLive Rio Tinto Prices
arrow_forwardWhere to Spread Bet on Rio Tinto
arrow_forwardHow to Spread Bet on Rio Tinto


Live Rio Tinto Chart and Prices



Where Can I Spread Bet on Rio Tinto?

Most of the spread betting brokers will offer prices and charts on shares including Rio Tinto 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 Rio Tinto

For example, let’s say you are considering spread betting on Rio Tinto, so you go on a spread betting site, such as FinancialSpreads.com, and see the spread priced at:

Rio Tinto Rolling Daily: 3480.2p – 3485.3p

Here’s what you can expect from a trade

Spread Betting Market: Rio Tinto Rolling Daily
The Price: 3480.2p – 3485.3p
How the Spread Works: You can bet on the Rio Tinto Rolling Daily market going:

  arrow_upward  Higher than 3485.3p, or
  arrow_downward  Lower than 3480.2p

This is a Rolling Daily spread bet which means that there is no settlement date for this trade. If you haven’t closed your trade and the trading session ends then your trade will automatically roll over into the next session.

If a trade does roll over then you will normally either pay or receive interest for overnight financing based on whether you are betting on the market to increase or decrease.

For additional details, please read our “guide to daily spread betting“.
Units (Points) Traded: Shares spread bets on the Rio Tinto market are made in £x per penny.

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

E.g. if Rio Tinto moves 55p then you would lose or gain 55 multiples of your stake.
Stake per Unit: You decide how much you are going to risk per penny, e.g. £1 per penny, £4 per penny, £15 per penny etc.
Brief Staking Exercise: If, as an example, you chose a stake of £4 per penny and Rio Tinto changes by 24p, you would lose/win £4 per penny x 24p = £96.


Worked Spread Trading Example | Going Long of Rio Tinto

Financial spread trading on the UK share to rise

You Now Choose Whether to Go Long or Short: Rio Tinto to push:

  arrow_upward  Higher than 3485.3p? or
  arrow_downward  Lower than 3480.2p?

Let’s Assume You Want to Go Long:   arrow_upward  Higher than 3485.3p
You Decide Your Stake, Let’s Assume You Opt For: £2 per penny
So What Next?
  • You will make a profit of £2 for each penny Rio Tinto moves above 3485.3p
  • You will lose £2 for every penny Rio Tinto goes lower than 3485.3p
When Betting on a Market to Increase Your Trading Profits (or Losses) = (Closing Level – Initial Level) x stake per penny
 
Situation 1 Rio Tinto climbs and the spread trading market adjusts and moves to 3560.2p – 3565.3p.
Time to Take a Profit? At this point, you may decide to keep your bet open or close it to take your profit. In this case you decide to settle your trade and sell at 3560.2p.
Your Trading Profits (or Losses) = (Closing Level – Initial Level) x stake per penny
(3560.2p – 3485.3p) x £2 per penny
74.9p x £2 per penny
Your Trading Profits (or Losses) = £149.80 profit
 
Situation 2 Rio Tinto falls and the spread betting market is revised and set at 3415.6p – 3420.7p.
Limit the Loss? At this point, you may decide to let your bet run or close it, i.e. close your trade to limit your losses. In this example you choose to close your bet by selling the market at 3415.6p.
Your Trading Profits (or Losses) = (Closing Level – Initial Level) x stake per penny
(3415.6p – 3485.3p) x £2 per penny
-69.7p x £2 per penny
Your Trading Profits (or Losses) = -£139.40 loss


Spread Betting Example | Taking a Short Position on Rio Tinto

Spread trading on the mining company’s share to drop

You Now Work Out Whether to Buy or Sell: Rio Tinto to go:

  arrow_upward  Higher than 3485.3p? or
  arrow_downward  Lower than 3480.2p?

Let’s Say You Want to Sell:   arrow_downward  Lower than 3480.2p
You Select Your Stake Size, Let’s Say You Choose: £1 per penny
So What Now?
  • You will lose £1 for every penny Rio Tinto pushes higher than 3480.2p
  • You will make a profit of £1 for every penny Rio Tinto falls below 3480.2p
When Speculating on a Market to Fall Your Trading Profits (or Losses) = (Initial Level – Closing Level) x stake per penny
 
Situation 3 Rio Tinto moves lower and the financial spread betting market moves to 3381.6p – 3386.7p.
Take Your Profit? You could choose to leave your position open or close it, i.e. close your spread bet to lock in your profit. For this example, you decide to settle your bet and buy the market at 3386.7p.
Your Trading Profits (or Losses) = (Initial Level – Closing Level) x stake per penny
(3480.2p – 3386.7p) x £1 per penny
93.5p x £1 per penny
Your Trading Profits (or Losses) = £93.50 profit
 
Situation 4 Rio Tinto increases and the market is adjusted and moved to 3562.1p – 3567.2p.
Close and Restrict Your Loss?You can decide to keep your spread bet open or close it, i.e. close your trade and restrict your loss. In this instance you choose to close your trade by buying the market at 3567.2p.
Your Trading Profits (or Losses) = (Initial Level – Closing Level) x stake per penny
(3480.2p – 3567.2p) x £1 per penny
-87.0p x £1 per penny
Your Trading Profits (or Losses) = -£87.00 loss


Rio Tinto Notes:

  • Spread trading market price from FinancialSpreads.com: 9 November 2011
  • Most spread betting companies will also let you trade on the mining giant in euros per penny and US dollars per penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

Leave a Reply

Be the First to Comment!

Notify of
wpDiscuz