Vodafone Spread Betting Guide

Vodafone Spread Betting Guide

Vodafone Spread Betting Guide

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


Live Vodafone Chart and Prices



Where Can I Spread Bet on Vodafone?

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

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How to Spread Bet on Vodafone

For example, let’s assume you want to financial spread bet on Vodafone, so you look on a spread trading site, such as Financial Spreads, and get the real time market:

Vodafone Rolling Daily: 170.9p – 171.2p

Here’s how the trade works

Market: Vodafone Rolling Daily
The Price: 170.9p – 171.2p
How the Trade Works: Now you can bet on the Vodafone Rolling Daily market moving:

  arrow_upward  Above 171.2p, or
  arrow_downward  Below 170.9p

This spread betting market is a ‘Rolling Daily’ market and so there is no final closing date for this spread bet. If you haven’t closed your trade and the trading session ends then your trade will roll over into the next trading day.

Note that if the trade is rolled over then you will either have to pay or receive a small fee for overnight financing depending on whether you are betting on the market to move higher or lower.

For further details see how a daily spread bet works and what is a daily spread bet.
Units (Points) Traded: Spread betting trades on the Vodafone market are made in £x per penny.

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

E.g. if Vodafone changes by 40p then you would win / lose 40 multiples of your stake.
Stake per Unit: You choose what to risk per penny, e.g. £2 per penny, £3 per penny, £10 per penny etc.
Brief Staking Exercise: With that in mind, if your stake was £3 per penny and Vodafone moves by 27p, you would win or lose £3 per penny x 27p = £81.


Fully Worked Example | Taking a Long Position on Vodafone

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

You Choose Whether to Buy or Sell: Vodafone to go:

  arrow_upward  Above 171.2p? or
  arrow_downward  Below 170.9p?

You Might Decide to Go Long:   arrow_upward  Above 171.2p
You Decide How Much to Risk, Let’s Assume You Opt For: £15 per penny
What Happens Next?
  • You make a profit of £15 for every penny Vodafone rises above 171.2p
  • You make a loss of £15 for each penny Vodafone moves below 171.2p
When Betting on a Market to Increase Your Profits/Losses = (Settlement Price – Opening Price) x stake per penny
 
Scenario 1 Vodafone climbs and the financial spread betting market adjusts and moves to 177.2p – 177.5p.
Close and Take a Profit? You can decide to keep your spread bet open or close it to lock in a profit. In this case you opt to settle your trade and sell at 177.2p.
Your Profits/Losses = (Settlement Price – Opening Price) x stake per penny
(177.2p – 171.2p) x £15 per penny
6.0p x £15 per penny
Your Profits/Losses = £90.00 profit
 
Scenario 2 Vodafone drops and the spread betting market is revised to 166.1p – 166.4p.
Time to Restrict the Loss? At this point, you can choose to keep your spread bet open or close it to restrict your loss. In this case you decide to settle your trade by selling the market at 166.1p.
Your Profits/Losses = (Settlement Price – Opening Price) x stake per penny
(166.1p – 171.2p) x £15 per penny
-5.1p x £15 per penny
Your Profits/Losses = -£76.50 loss


Worked Spread Betting Example | Taking a Bearish View of Vodafone

Online spread betting on the UK share to move down

You Now Work Out Whether to Buy or Sell: Vodafone to move:

  arrow_upward  Above 171.2p? or
  arrow_downward  Below 170.9p?

Let’s Assume You Want to Sell:   arrow_downward  Below 170.9p
You Select Your Stake Size, Let’s Say You Choose: £10 per penny
So What Now?
  • You make a loss of £10 for each penny Vodafone increases higher than 170.9p
  • You make a profit of £10 for each penny Vodafone falls lower than 170.9p
If You Are Selling a Spread Bet Your Profits/Losses = (Opening Price – Settlement Price) x stake per penny
 
Scenario 3 Vodafone falls and the spread trading market is revised and is set at 160.7p – 161.0p.
Time to Take a Profit? You can choose to leave your spread bet open or close it, i.e. close your spread bet to lock in your profit. For this example, you opt to settle your trade by buying at 161.0p.
Your Profits/Losses = (Opening Price – Settlement Price) x stake per penny
(170.9p – 161.0p) x £10 per penny
9.9p x £10 per penny
Your Profits/Losses = £99.00 profit
 
Scenario 4 Vodafone moves higher and the market is revised and changes to 179.1p – 179.4p.
Restrict the Loss?You could choose to leave your spread bet open or close it, i.e. close your position to limit your losses. In this instance you opt to settle your bet and buy at 179.4p.
Your Profits/Losses = (Opening Price – Settlement Price) x stake per penny
(170.9p – 179.4p) x £10 per penny
-8.5p x £10 per penny
Your Profits/Losses = -£85.00 loss


Vodafone Notes:

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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