Tesco Spread Betting Guide

Tesco Spread Betting Guide

Tesco Spread Betting Guide

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


Live Tesco Chart and Prices



Where Can I Spread Bet on Tesco?

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

Company Shares? Shares
Min Stake
Mobile
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How to Spread Bet on Tesco

Let’s say that you want to trade Tesco, so you look on a spread trading website, such as City Index, and see that they are offering the market at:

Tesco Rolling Daily: 402.1p – 402.7p

This is what you need to know.

The Spread Betting Market: Tesco Rolling Daily
The Spread Betting Quote: 402.1p – 402.7p
How the Market Works: You can speculate on the Tesco Rolling Daily market moving:

  arrow_upward  Higher than 402.7p, or
  arrow_downward  Lower than 402.1p

This market is a Rolling Daily market and so there is no expiry date for this spread bet. If you don’t close your trade and the trading session ends then your trade will roll over to the next trading session.

Note: if a trade rolls over then you will normally either receive or pay a small fee for overnight financing depending upon whether you are betting on the market to go down or up.

For more information see our guide to daily spread bets.
Traded Units: Trades on the Tesco market are priced in £x per penny.

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

E.g. if Tesco moves 35p then you would lose/win 35 times your stake.
Stake Size per Unit: You choose how much you are going to trade per penny, e.g. £2 per penny, £4 per penny, £15 per penny etc.
Quick Example: As an example, if you had a stake of £3 per penny and Tesco moves by 34p, you would win/lose £3 per penny x 34p = £102.


Spread Trading Example | Going Long of Tesco

Spread trading on the UK supermarket’s share price to rise

You Decide to Go Long or Short: Tesco to go:

  arrow_upward  Higher than 402.7p? or
  arrow_downward  Lower than 402.1p?

Let’s Assume You Decide to Buy:   arrow_upward  Higher than 402.7p
You Choose Your Stake, Let’s Say You Select: £10 per penny
So What Next?
  • You win £10 for every penny Tesco moves higher than 402.7p
  • You will make a loss of £10 for each penny Tesco decreases lower than 402.7p
If You Are Spread Betting on a Market to Increase Your Trading Profits/Losses = (Final Value – Initial Value) x stake per penny
 
Example 1 Tesco rises and the financial spread betting market is adjusted to 412.8p – 413.4p.
Close for a Profit? At this point, you could choose to leave your spread bet open or close it to take your profit. In this instance you decide to settle your trade and sell at 412.8p.
Your Trading Profits/Losses = (Final Value – Initial Value) x stake per penny
(412.8p – 402.7p) x £10 per penny
10.1p x £10 per penny
Your Trading Profits/Losses = £101.00 profit
 
Example 2 Tesco pushes lower and the spread betting market adjusts and moves to 394.0p – 394.6p.
Time to Restrict the Loss? At this point, you may decide to leave your spread bet open or close it, i.e. close your spread bet to limit your loss. In this case you choose to settle your position by selling at 394.0p.
Your Trading Profits/Losses = (Final Value – Initial Value) x stake per penny
(394.0p – 402.7p) x £10 per penny
-8.7p x £10 per penny
Your Trading Profits/Losses = -£87.00 loss


Trading Example | Going Short of Tesco

Spread betting on the supermarket’s share price to fall

You Now Consider Whether to Buy or Sell: Tesco to push:

  arrow_upward  Higher than 402.7p? or
  arrow_downward  Lower than 402.1p?

Let’s Assume You Want to Sell:   arrow_downward  Lower than 402.1p
You Select Your Stake, Selecting: £5 per penny
So What Happens Now?
  • You will make a loss of £5 for each penny Tesco goes higher than 402.1p
  • You win £5 for each penny Tesco moves lower than 402.1p
If You Are Spread Betting on a Market to Fall Your Trading Profits/Losses = (Initial Value – Final Value) x stake per penny
 
Example 3 Tesco decreases and the spread trading market is adjusted and moved to 385.2p – 385.8p.
Close and Take Your Profit? At this point, you could decide to let your position run or close it and take your profit. In this example you decide to close your trade and buy the market at 385.8p.
Your Trading Profits/Losses = (Initial Value – Final Value) x stake per penny
(402.1p – 385.8p) x £5 per penny
16.3p x £5 per penny
Your Trading Profits/Losses = £81.50 profit
 
Example 4 Tesco pushes higher and the market is revised and set at 415.5p – 416.1p.
Restrict the Loss?You could choose to let your bet run or close it, i.e. close your trade and restrict your losses. In this instance you choose to settle your position by buying the market at 416.1p.
Your Trading Profits/Losses = (Initial Value – Final Value) x stake per penny
(402.1p – 416.1p) x £5 per penny
-14.0p x £5 per penny
Your Trading Profits/Losses = -£70.00 loss


Tesco Notes:

  • Spread trading market taken from City Index, 9 November 2011
  • Many spread betting firms will also allow you to trade on Tesco in euros/penny and dollars/penny
  • You can also trade this market using a DFB (Daily Funded Bet)

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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