Rolls Royce Spread Betting Guide

Rolls Royce Spread Betting Guide

Rolls Royce Spread Betting Guide

arrow_forwardLive Rolls Royce Chart
arrow_forwardLive Rolls Royce Prices
arrow_forwardWhere to Spread Bet on Rolls Royce
arrow_forwardHow to Spread Bet on Rolls Royce


Live Rolls Royce CFD Chart and Prices



Where Can I Spread Bet on Rolls Royce?

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

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How to Spread Bet on Rolls Royce

As an example, let’s suppose that you are interested in spread trading on Rolls Royce, so you go on a financial spread betting website, e.g. FinancialSpreads, and get the real time quote priced at:

Rolls Royce Rolling Daily: 769.6p – 771.4p

Here’s what you can expect…

Market: Rolls Royce Rolling Daily
The Spread: 769.6p – 771.4p
This Means That: Now you can spread bet on the Rolls Royce Rolling Daily market moving:

  arrow_upward  Higher than 771.4p, or
  arrow_downward  Lower than 769.6p

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

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

For additional details see Rolling Spread Bets.
Units (Points) Traded: Trades on the Rolls Royce market are made in £x per penny.

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

E.g. if Rolls Royce moves by 50p then you would lose/win 50 times your stake.
Stake Size: You choose how much you would like to stake per penny, e.g. £2 per penny, £3 per penny, £8 per penny etc.
Quick Example: If you went with a stake of £4 per penny and Rolls Royce changes by 25p, you would win or lose £4 per penny x 25p = £100.


Fully Worked Spread Betting Example | Going Long of Rolls Royce

Financial spread betting on the equity to increase in value

You Decide Whether to Go Long or Short: Rolls Royce to go:

  arrow_upward  Higher than 771.4p? or
  arrow_downward  Lower than 769.6p?

You Might Choose to Go Long:   arrow_upward  Higher than 771.4p
You Choose Your Stake, Let’s Say You Select: £5 per penny
Now What Happens?
  • You make a profit of £5 for each penny Rolls Royce goes higher than 771.4p
  • Your trade loses £5 for every penny Rolls Royce decreases lower than 771.4p
If You Buy a Market Your Trading P&L = (Settlement Price – Opening Price) x stake per penny
 
Example 1 Rolls Royce goes higher and the shares spread betting market adjusts and moves to 786.8p – 788.6p.
Close and Take a Profit? You could opt to keep your bet open or close it, i.e. close your trade to lock in a profit. For this example, you opt to settle your trade and sell the market at 786.8p.
Your Trading P&L = (Settlement Price – Opening Price) x stake per penny
(786.8p – 771.4p) x £5 per penny
15.4p x £5 per penny
Your Trading P&L = £77.00 profit
 
Example 2 Rolls Royce slips and the market is moved to 752.9p – 754.7p.
Restrict the Loss? At this point, you may decide to keep your position open or close it, i.e. close your position to limit your losses. In this instance you choose to settle your trade and sell at 752.9p.
Your Trading P&L = (Settlement Price – Opening Price) x stake per penny
(752.9p – 771.4p) x £5 per penny
-18.5p x £5 per penny
Your Trading P&L = -£92.50 loss


Worked Trading Example | Taking a Bearish View of Rolls Royce

Spread betting on the equity to go down in value

You Choose Whether to Go Long or Short: Rolls Royce to push:

  arrow_upward  Higher than 771.4p? or
  arrow_downward  Lower than 769.6p?

Let’s Assume You Want to Sell:   arrow_downward  Lower than 769.6p
You Decide Your Stake, Let’s Say You Opt For: £3 per penny
Now What?
  • Your trade loses £3 for every penny Rolls Royce pushes above 769.6p
  • You make a profit of £3 for every penny Rolls Royce goes below 769.6p
If You Are Speculating on a Market to Decrease Your Trading P&L = (Opening Price – Settlement Price) x stake per penny
 
Example 3 Rolls Royce drops and the spread betting market is revised and moved to 729.3p – 731.1p.
Take a Profit? You could opt to keep your trade open or close it, i.e. close your spread bet to lock in your profit. In this instance you choose to close your bet and buy at 731.1p.
Your Trading P&L = (Opening Price – Settlement Price) x stake per penny
(769.6p – 731.1p) x £3 per penny
38.5p x £3 per penny
Your Trading P&L = £115.50 profit
 
Example 4 Rolls Royce increases and the financial spread betting market changes to 814.0p – 815.8p.
Time to Restrict the Loss?You may opt to keep your spread bet open or close it in order to restrict your losses. In this example you decide to settle your position and buy the market at 815.8p.
Your Trading P&L = (Opening Price – Settlement Price) x stake per penny
(769.6p – 815.8p) x £3 per penny
-46.2p x £3 per penny
Your Trading P&L = -£138.60 loss


Rolls Royce Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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