Sky Spread Betting Guide

Sky Spread Betting Guide

Sky Spread Betting Guide

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


Live Sky Chart and Prices



Where Can I Spread Bet on Sky?

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

Company Shares? Shares
Min Stake
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How to Spread Bet on Sky

Let’s imagine you want to take a position on Sky, you look at a financial spread betting site, such as LCG, and get the current spread at:

Sky Rolling Daily: 716.1p – 717.4p

This is what you need to know about how it works

The Spread Betting Market: Sky Rolling Daily
Spread: 716.1p – 717.4p
This Means: You can bet on the Sky Rolling Daily market moving:

  arrow_upward  Above 717.4p, or
  arrow_downward  Below 716.1p

This is a ‘Rolling Daily’ market and so there is no closing date. If you don’t close your position and the trading session ends then your position will roll over into the next trading session.

If a trade rolls over then you will either pay or receive interest for overnight financing depending upon the direction of your trade.

For additional details also see how a rolling spread bet works.
Units (Points) Traded: Bets on the Sky market are priced in £x per penny.

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

E.g. if Sky changes by 50p then you would lose / win 50 multiples of your stake.
Stake Size: You work out how much you want to risk per penny, e.g. £2 per penny, £4 per penny, £8 per penny etc.
Brief Example: With that in mind, if you have a stake of £3 per penny and Sky moves 33p, you would lose or win £3 per penny x 33p = £99.


Worked Example | Going Long of Sky

Spread betting on the broadcaster’s shares to increase in value

You Now Consider Whether to Buy or Sell: Sky going:

  arrow_upward  Above 717.4p? or
  arrow_downward  Below 716.1p?

Let’s Say You Choose to Go Long:   arrow_upward  Above 717.4p
You Select How Much to Risk, Let’s Say You Choose: £3 per penny
So What Next?
  • You make £3 for each penny Sky moves higher than 717.4p
  • Your trade loses £3 for every penny Sky decreases lower than 717.4p
When Buying a Spread Bet Your P&L = (Final Value – Initial Value) x stake per penny
 
Trading Example 1 Sky climbs and the financial spread betting market is revised and changes to 746.1p – 747.4p.
Lock in Your Profit? You may choose to let your bet run or close it in order to take your profit. In this example you opt to settle your trade and sell the market at 746.1p.
Your P&L = (Final Value – Initial Value) x stake per penny
(746.1p – 717.4p) x £3 per penny
28.7p x £3 per penny
Your P&L = £86.10 profit
 
Trading Example 2 Sky decreases and the spread betting market becomes 692.3p – 693.6p.
Restrict the Loss? At this point, you could choose to let your spread bet run or close it and restrict your loss. In this case you decide to close your trade by selling the market at 692.3p.
Your P&L = (Final Value – Initial Value) x stake per penny
(692.3p – 717.4p) x £3 per penny
-25.1p x £3 per penny
Your P&L = -£75.30 loss


Fully Worked Trading Example | Selling Sky

Financial spread betting on the UK firmn to drop

You Now Decide Whether to Buy or Sell: Sky to push:

  arrow_upward  Above 717.4p? or
  arrow_downward  Below 716.1p?

Let’s Say You Sell:   arrow_downward  Below 716.1p
You Decide How Much to Risk, Let’s Say You Select: £5 per penny
What Happens Now?
  • Your trade loses £5 for every penny Sky pushes above 716.1p
  • You make £5 for every penny Sky decreases below 716.1p
If You Are Spread Betting on a Market to Go Down Your P&L = (Initial Value – Final Value) x stake per penny
 
Trading Example 3 Sky goes lower and the spread trading market is adjusted and moved to 694.7p – 696.0p.
Time to Take Your Profit? At this point, you may decide to let your trade run or close it and lock in your profit. In this example you opt to close your position by buying at 696.0p.
Your P&L = (Initial Value – Final Value) x stake per penny
(716.1p – 696.0p) x £5 per penny
20.1p x £5 per penny
Your P&L = £100.50 profit
 
Trading Example 4 Sky moves higher and the spread trading market moves to 732.3p – 733.6p.
Close and Restrict Your Loss?At this point, you can opt to let your bet run or close it in order to limit your losses. In this case you decide to close your position and buy the market at 733.6p.
Your P&L = (Initial Value – Final Value) x stake per penny
(716.1p – 733.6p) x £5 per penny
-17.5p x £5 per penny
Your P&L = -£87.50 loss


Sky Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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