Shell Spread Betting Guide

Shell Spread Betting Guide

Shell Spread Betting Guide

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


Live Shell CFD Chart and Prices



Where Can I Spread Bet on Shell?

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

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How to Spread Bet on Shell

For example, let’s say that you are interested in spread trading on Shell, so you look on a spread trading site, e.g. InterTrader, and get the latest market priced at:

Shell Rolling Daily: 2257.3p – 2260.2p

Here’s what you can expect…

The Spread Betting Market Shell Rolling Daily
The Spread Betting Price 2257.3p – 2260.2p
This Means That You can take a position on the Shell Rolling Daily market moving:

  arrow_upward  Above 2260.2p, or
  arrow_downward  Below 2257.3p

This is a Rolling Daily spread bet and so there is no closing date for this spread bet. If you haven’t closed your position and the session ends then your trade will roll over to the next session.

Note: if a trade rolls over then you will either receive or be charged a small fee for overnight financing based upon the direction of your position.

To learn more see Rolling Daily Spread Betting.
Trading Units Spread betting trades on the Shell market are made in £x per penny.

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

E.g. if Shell moves by 45p then you would win / lose 45 multiples of your stake.
Trade Size You decide how much you are going to stake per penny, e.g. £1 per penny, £3 per penny, £8 per penny etc.
Quick Staking Example With that in mind, if you have a stake of £4 per penny and Shell moves 31p, you would lose or win £4 per penny x 31p = £124.


Spread Betting Example | Going Long of Shell

Online spread betting on the share to increase in value

You Select Whether to Go Long or Short Shell to push:

  arrow_upward  Above 2260.2p? or
  arrow_downward  Below 2257.3p?

You Might Want to Go Long   arrow_upward  Above 2260.2p
You Select Your Stake, Choosing £2 per penny
What Next?
  • You win £2 for every penny Shell pushes higher than 2260.2p
  • You will lose £2 for each penny Shell goes below 2260.2p
If You Are Speculating on a Market to Increase Your P/L = (Final Value – Initial Value) x stake per penny
 
Trading Example 1 Shell goes higher and the shares spread betting market is moved to 2322.4p – 2325.3p.
Close and Take Your Profit? You may opt to keep your bet open or close it, i.e. close your spread bet to lock in a profit. In this example you decide to settle your trade by selling the market at 2322.4p.
Your P/L = (Final Value – Initial Value) x stake per penny
(2322.4p – 2260.2p) x £2 per penny
62.2p x £2 per penny
Your P/L = £124.40 profit
 
Trading Example 2 Shell moves lower and the spread trading market is revised and changes to 2206.0p – 2208.9p.
Close and Restrict Your Loss? You can decide to let your position run or close it, i.e. close your trade to restrict your loss. In this example you opt to close your trade and sell at 2206.0p.
Your P/L = (Final Value – Initial Value) x stake per penny
(2206.0p – 2260.2p) x £2 per penny
-54.2p x £2 per penny
Your P/L = -£108.40 loss


Fully Worked Example | Going Short of Shell

Spread betting on the share to move down

You Now Choose to Go Long or Short Shell to go:

  arrow_upward  Above 2260.2p? or
  arrow_downward  Below 2257.3p?

Let’s Assume You Go Short   arrow_downward  Below 2257.3p
You Decide Your Stake Size, Let’s Assume You Opt For £3 per penny
Now What?
  • You will lose £3 for each penny Shell goes higher than 2257.3p
  • You win £3 for each penny Shell decreases lower than 2257.3p
If You Are Betting on a Market to Fall Your P/L = (Initial Value – Final Value) x stake per penny
 
Trading Example 3 Shell decreases and the financial spread betting market is revised and is set at 2220.3p – 2223.2p.
Take Your Profit? At this point, you can choose to leave your bet open or close it to lock in a profit. In this case you decide to close your bet and buy at 2223.2p.
Your P/L = (Initial Value – Final Value) x stake per penny
(2257.3p – 2223.2p) x £3 per penny
34.1p x £3 per penny
Your P/L = £102.30 profit
 
Trading Example 4 Shell moves higher and the market changes to 2284.2p – 2287.1p.
Close and Limit the Loss?You can decide to leave your trade open or close it to restrict your losses. In this instance you decide to close your position by buying at 2287.1p.
Your P/L = (Initial Value – Final Value) x stake per penny
(2257.3p – 2287.1p) x £3 per penny
-29.8p x £3 per penny
Your P/L = -£89.40 loss


Shell Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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