Tullow Oil Spread Betting Guide

Tullow Oil Spread Betting Guide

Tullow Oil Spread Betting Guide

arrow_forwardLive Tullow Oil Chart
arrow_forwardLive Tullow Oil Prices
arrow_forwardWhere to Spread Bet on Tullow Oil
arrow_forwardHow to Spread Bet on Tullow Oil


Live Tullow Oil Chart and Prices



Where Can I Spread Bet on Tullow Oil?

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

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How to Spread Bet on Tullow Oil

As an example, let’s suppose you are considering spread trading on Tullow Oil, you go on a spread trading website, like InterTrader, and see that they are offering the real-time market price of:

Tullow Oil Rolling Daily: 1440.2p – 1443.8p

Here is what you can expect.

Market Tullow Oil Rolling Daily
The Quote 1440.2p – 1443.8p
How the Spread Works Now you can take a position on the Tullow Oil Rolling Daily market to go:

  arrow_upward  Above 1443.8p, or
  arrow_downward  Below 1440.2p

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

Note that if a trade is rolled over then you will either receive or be charged interest for overnight financing based upon whether you are speculating on the market to rise or fall.

To learn more also see how a daily spread bet works.
Points (Units) Traded Trades on the Tullow Oil market are made in £x per penny.

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

E.g. if Tullow Oil moves 50p then you would lose/win 50 multiples of your stake.
Stake Size per Unit You decide how much you would like to stake per penny, e.g. £1 per penny, £3 per penny, £20 per penny etc.
Quick Staking Exercise As an example, if you went with a stake of £4 per penny and Tullow Oil changes by 33p, you would lose or gain £4 per penny x 33p = £132.


Worked Trading Example | Taking a Long Position on Tullow Oil

Financial spread betting on the UK share to move up in value

You Now Choose Whether to Go Long or Short Tullow Oil to move:

  arrow_upward  Above 1443.8p? or
  arrow_downward  Below 1440.2p?

Let’s Assume You Buy   arrow_upward  Above 1443.8p
You Decide Your Stake, Choosing £2 per penny
What Now?
  • You win £2 for every penny Tullow Oil increases above 1443.8p
  • Your trade loses £2 for each penny Tullow Oil moves below 1443.8p
When Betting on a Market to Increase Your Trading P/L = (Final Value – Initial Value) x stake per penny
 
Trading Situation 1 Tullow Oil increases and the spread betting market becomes 1496.5p – 1500.1p.
Close and Take a Profit? At this point, you may opt to leave your trade open or close it in order to take your profit. In this instance you choose to close your position and sell at 1496.5p.
Your Trading P/L = (Final Value – Initial Value) x stake per penny
(1496.5p – 1443.8p) x £2 per penny
52.7p x £2 per penny
Your Trading P/L = £105.40 profit
 
Trading Situation 2 Tullow Oil falls and the spread trading market changes to 1396.9p – 1400.5p.
Limit the Loss? You may choose to let your bet run or close it, i.e. close your trade to restrict your losses. In this instance you opt to settle your position and sell the market at 1396.9p.
Your Trading P/L = (Final Value – Initial Value) x stake per penny
(1396.9p – 1443.8p) x £2 per penny
-46.9p x £2 per penny
Your Trading P/L = -£93.80 loss


Spread Betting Example | Selling Tullow Oil

Financial spread trading on the UK share to go down in value

You Consider Whether to Go Long or Short Tullow Oil going:

  arrow_upward  Above 1443.8p? or
  arrow_downward  Below 1440.2p?

Let’s Say You Decide to Go Short   arrow_downward  Below 1440.2p
You Decide Your Stake Size, Let’s Assume You Select £1 per penny
So What Happens Next?
  • Your trade loses £1 for each penny Tullow Oil moves higher than 1440.2p
  • You win £1 for each penny Tullow Oil decreases lower than 1440.2p
When Selling a Spread Bet Your Trading P/L = (Initial Value – Final Value) x stake per penny
 
Trading Situation 3 Tullow Oil slips and the financial spread betting market is revised and changes to 1349.9p – 1353.5p.
Time to Take a Profit? You can opt to keep your bet open or close it to take a profit. For this example, you opt to settle your position by buying at 1353.5p.
Your Trading P/L = (Initial Value – Final Value) x stake per penny
(1440.2p – 1353.5p) x £1 per penny
86.7p x £1 per penny
Your Trading P/L = £86.70 profit
 
Trading Situation 4 Tullow Oil rises and the market moves to 1513.8p – 1517.4p.
Close and Restrict Your Loss?You may opt to let your bet run or close it, i.e. close your position and restrict your losses. For this example, you opt to settle your trade and buy at 1517.4p.
Your Trading P/L = (Initial Value – Final Value) x stake per penny
(1440.2p – 1517.4p) x £1 per penny
-77.2p x £1 per penny
Your Trading P/L = -£77.20 loss


Tullow Oil Notes:

  • Financial spread trading quote taken from InterTrader as of 10 January 2012
  • Many spread betting firms also give you the option of spread trading on Tullow Oil in euros/penny and dollars/penny
  • You can also trade UK shares like Tullow with a Daily Funded Bet (DFB)

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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