Spread betting on the Worlds Indices is becoming more and more popular. Spread betting on stocks allows you to take a view on the direction of the market as a whole rather than trade on a particular stock or share.
WorldSpreads offers you a vast range of Global indices to spread bet on including UK 100, WALL STREET, DAX and S&P 500. Many of our bets on indices are quoted 24 hours a day. This means you can react to global stock market news and gain exposure even when the underlying market is closed. WorldSpreads have some of the tightest spreads around.
INDICES PRODUCTS OFFERED:
- UK 100
- WALL ST
- UK 250
- US DOLLAR INDEX
- ALSI 40
- AMSTERDAM
- ATHENS 20
- BUX (HUN)
- CAC
- CHINA ENT
- DAX
- EURO STOXX
- EUROSTOX
- EUROSTOX
- FTSE TECHMARK
- HANG SENG
- IBEX35
- MDAX
- NASDAQ 100
- NIFTY 50
- NIKKEI
- RUSSELL 2000
- S&P 500
- SWISS
Trading example:
You have logged into your spread betting account with WorldSpreads and you have decided that you think stocks in the UK are over-valued. So you put in a sell order on the UK 100.
There are various options available to you depending on the length of time the spread trade is to be kept open.
You can choose between a short-term daily bet, to take a position on the immediate market direction across a whole market, or longer-term bets to gain exposure to a market over a longer period of time.
In this example we will assume you have taken a bet on the September quarterly future.
WorldSpreads price on the UK 100 September 10 future is 5347 - 5352, the client sells £1 per point at 5347. For every one point movement in the September future price you will win or lose £1. The margin requirement for this trade is 40 time your stake. £1 x 40 = £40
One week later the market has risen to 5385 - 5390 leading you to buy back £1 per point at 5390. The Loss on the trade is 5347 - 5390 = (43) x £1 per point = (£43). If the market had fallen you would have made a profit.
Rollover explained
A rollover is a charge for holding the position overnight and is charged in point terms. For example, in the UK 100 rolling future we charge 1 point to rollover the position. Calculated and 1 point times your stake.