Sainsbury’s Spread Betting Guide

Sainsbury's Spread Betting Guide

Sainsburys Spread Betting Guide

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


Live Sainsburys CFD Chart and Prices



Where Can I Spread Bet on Sainsburys?

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

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How to Spread Bet on Sainsburys

As an example, let’s imagine you want to spread trade Sainsburys, you go on a financial spread betting site, such as Tradefair, and see they are offering the current spread at:

Sainsburys Rolling Daily: 294.8p – 295.4p

Here is how the trade works:

The Spread Betting Market: Sainsburys Rolling Daily
Spread Betting Price: 294.8p – 295.4p
How This Works: Now you can speculate on the Sainsburys Rolling Daily market going:

  arrow_upward  Above 295.4p, or
  arrow_downward  Below 294.8p

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

Note that if a trade does roll over then you will normally either be credited or debited for overnight financing depending on whether you are betting on the market to fall or rise.

For additional information also see how a daily spread bet works.
Units (Points) Traded: Spread trades on the Sainsburys market are priced in £x per penny.

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

E.g. if Sainsburys changes by 45p then you would gain or lose 45 multiples of your stake.
Stake (Trade Size): You decide how much you want to trade per penny, e.g. £1 per penny, £5 per penny, £20 per penny etc.
Quick Staking Exercise: If, as an example, your stake was £4 per penny and Sainsburys moves 29p, you would lose or win £4 per penny x 29p = £116.


Fully Worked Spread Trading Example | Going Long of Sainsburys

Online spread betting on the equity to move higher

You Consider Whether to Go Long or Short: Sainsburys to push:

  arrow_upward  Above 295.4p? or
  arrow_downward  Below 294.8p?

You Might Want to Go Long:   arrow_upward  Above 295.4p
You Choose Your Stake Size, Let’s Say You Choose: £10 per penny
What Now?
  • You will win £10 for every penny Sainsburys rises higher than 295.4p
  • Your trade loses £10 for each penny Sainsburys decreases lower than 295.4p
When You Buy a Market Your Trading Profits/Losses = (Closing Value – Initial Value) x stake per penny
 
Situation 1 Sainsburys pushes higher and the shares spread betting market is revised and moved to 303.5p – 304.1p.
Take a Profit? You could opt to let your spread bet run or close it to take your profit. In this example you choose to close your trade and sell at 303.5p.
Your Trading Profits/Losses = (Closing Value – Initial Value) x stake per penny
(303.5p – 295.4p) x £10 per penny
8.1p x £10 per penny
Your Trading Profits/Losses = £81.00 profit
 
Situation 2 Sainsburys pushes lower and the financial spread betting market is revised and is set at 285.5p – 286.1p.
Close and Restrict the Loss? At this point, you could opt to leave your trade open or close it, i.e. close your trade and restrict your losses. In this example you opt to close your trade by selling the market at 285.5p.
Your Trading Profits/Losses = (Closing Value – Initial Value) x stake per penny
(285.5p – 295.4p) x £10 per penny
-9.9p x £10 per penny
Your Trading Profits/Losses = -£99.00 loss


Trading Example | Going Short of Sainsburys

Financial spread trading on the equity to go down in value

You Now Decide Whether to Go Long or Short: Sainsburys to move:

  arrow_upward  Above 295.4p? or
  arrow_downward  Below 294.8p?

You Might Decide to Go Short:   arrow_downward  Below 294.8p
You Decide Your Stake, Let’s Say You Select: £5 per penny
What Next?
  • Your trade loses £5 for each penny Sainsburys goes above 294.8p
  • You will win £5 for each penny Sainsburys falls below 294.8p
If You Are Betting on a Market to Fall Your Trading Profits/Losses = (Initial Value – Closing Value) x stake per penny
 
Situation 3 Sainsburys goes lower and the spread trading market changes to 276.0p – 276.6p.
Time to Lock in Your Profit? At this point, you can decide to keep your trade open or close it in order to take a profit. In this case you decide to settle your bet by buying at 276.6p.
Your Trading Profits/Losses = (Initial Value – Closing Value) x stake per penny
(294.8p – 276.6p) x £5 per penny
18.2p x £5 per penny
Your Trading Profits/Losses = £91.00 profit
 
Situation 4 Sainsburys moves higher and the spread betting market adjusts and moves to 316.4p – 317.0p.
Time to Limit the Loss?At this point, you could decide to let your spread bet run or close it, i.e. close your trade to restrict your losses. For this example, you decide to close your position by buying the market at 317.0p.
Your Trading Profits/Losses = (Initial Value – Closing Value) x stake per penny
(294.8p – 317.0p) x £5 per penny
-22.2p x £5 per penny
Your Trading Profits/Losses = -£111.00 loss


Sainsburys Notes:

  • Spread betting market obtained from Tradefair, 6 February 2012
  • Many spread betting firms also let you trade on Sainsburys in euros/penny and US dollars/penny

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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