Spread Betting on Bank of America

Where to Spread Bet on Bank of America

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Shares Spread Betting
Shares (min stake)	£1	£1	£1	£1	£0.50	£0.50	£1

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Bank of America Spread Betting Prices and Charts

• Financial Spreads
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• InterTrader

How to Financial Spread Bet on Bank of America

Spread Trading Market:	Bank of America Rolling Daily
The Spread Betting Price:	$6.30 - $6.33
This Means That:	You can take a position on the Bank of America Rolling Daily market moving:   Above $6.33, or   Below $6.30 This is a 'Rolling Daily' trade and so there is no settlement date. If you decide not to close your trade and the session ends then your position will automatically roll over into the next session. Note: if the trade is rolled over then you will either have to pay or receive interest for overnight financing based upon whether you are speculating on the market to increase or decrease. For additional information see Rolling Spread Bets.
Traded Units:	Trades on the Bank of America market are priced in £x per cent. Where a cent is $0.01 of the share's price movement. E.g. if Bank of America changes by 45¢ ($0.45) then you would win or lose 45 times your stake.
Stake Size:	You decide how much you want to risk per cent, e.g. £2 per cent, £3 per cent, £8 per cent etc.
Staking Example:	If, as an example, your stake is £4 per cent and Bank of America moves by $0.29 (29¢), you would win / lose £4 per cent x 29¢ = £116.

Fully Worked Trading Example | Taking a Bullish View of Bank of America

You Decide Whether to Go Long or Short:	Bank of America to push:   Above $6.33? or   Below $6.30?
Let’s Assume You Choose to Buy:	Above $6.33
You Decide Your Stake Size, Let's Assume You Select:	£5 per cent
So What Now?	You win £5 for every cent ($0.01) Bank of America rises above $6.33 You lose £5 for each cent ($0.01) Bank of America decreases below $6.33
If You Are Betting on a Market to Increase Your Trading P&L =	(Final Value - Initial Value) x stake per cent
Trading Scenario 1	Bank of America rises and the spread trading market adjusts and moves to $6.54 - $6.57.
Close for a Profit?	You can decide to keep your trade open or close it, i.e. close your spread bet to lock in a profit. For this example, you choose to close your position and sell the market at $6.54.
Your Trading P&L =	(Final Value - Initial Value) x stake per cent
	($6.54 - $6.33) x £5 per cent
	$0.21 x £5 per cent
	21¢ x £5 per cent
Your Trading P&L =	£105 profit
Trading Scenario 2	Bank of America pushes lower and the financial spread betting market is adjusted and moved to $6.09 - $6.12.
Time to Limit Your Loss?	You may choose to keep your spread bet open or close it, i.e. close your spread bet to limit your losses. In this case you decide to settle your position by selling at $6.09.
Your Trading P&L =	(Final Value - Initial Value) x stake per cent
	($6.09 - $6.33) x £5 per cent
	-$0.24 x £5 per cent
	-24¢ x £5 per cent
Your Trading P&L =	-£120 loss

Trading Example | Taking a Short Position on Bank of America

You Now Decide Whether to Go Long or Short:	Bank of America going:   Above $6.33? or   Below $6.30?
You Might Want to Sell:	Below $6.30
You Decide Your Stake, Let's Assume You Opt For:	£3 per cent
Now What Happens?	You lose £3 for each cent ($0.01) Bank of America goes above $6.30 You win £3 for each cent ($0.01) Bank of America decreases lower than $6.30
When Spread Betting on a Market to Go Down Your Trading P&L =	(Initial Value - Final Value) x stake per cent
Trading Scenario 3	Bank of America falls and the spread betting market is revised to $5.99 - $6.02.
Close and Take a Profit?	You may opt to keep your bet open or close it in order to take your profit. In this instance you opt to close your bet by buying the market at $6.02.
Your Trading P&L =	(Initial Value - Final Value) x stake per cent
	($6.30 - $6.02) x £3 per cent
	$0.28 x £3 per cent
	28¢ x £3 per cent
Your Trading P&L =	£84 profit
Trading Scenario 4	Bank of America pushes higher and the market is revised and set at $6.59 - $6.62.
Close and Limit the Loss?	At this point, you may choose to leave your bet open or close it and limit your losses. In this instance you choose to close your trade and buy the market at $6.62.
Your Trading P&L =	(Initial Value - Final Value) x stake per cent
	($6.30 - $6.62) x £3 per cent
	-$0.32 x £3 per cent
	-32¢ x £3 per cent
Your Trading P&L =	-£96 loss

Bank of America Notes:

• Prices taken from InterTrader spread betting charts as of 9 November 2011
  
  
• Most spread betting companies will also allow you to spread bet on Bank of America in euros/cent and US dollars/cent
  
  
• With financial spread betting you can also take positions on a large variety of other asset classes. For additional details see:
  
  
  • Financial Spread Betting on Stock Market Indices
  • Forex Markets Spread Betting
  • Financial Spread Betting on Equities

Demo Accounts for Spread Betting on Bank of America

• Financial Spreads
• Capital Spreads
• InterTrader

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