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Can you show me an example spreadbet on the FTSE?

Trading the FTSE
Written by David

Let’s take the FTSE 100 index. If you believe that the FTSE 100 index will rise, you would buy at say £1 a point. If you believe that the FTSE 100 index will fall, you would sell. If you sell at £1 a point and the Footsie drops 60 points, you make £60. But if it rises 60 points, you lose £60.

If you place a spreadbet at £20 per point and the FTSE 100 rises by 25 points, you stand to make £500 (£20 x 25 points). But if it falls 30 points, you lose £600. The more the market goes in your predicted direction, the more you make; conversely the more the market moves against you, the more you lose.

About the author

David

I first cut my teeth in the Square Mile in the winter of 2002. I was young, fresh-faced and straight out of university; keen but maybe a little naïve about the way the investment world really worked… A few years ago I discover a whole new world of opportunity: spread betting on the financial markets.

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