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Spread Betting on Microsoft |
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The spread betting guide to trading US stocks and shares like Microsoft.
Where to Spread Bet on Microsoft
Stock Market News and Analysis
Microsoft Spread Betting Prices and Charts
How to Spread Bet on Microsoft
Demo Accounts for Spread Betting on Microsoft
Spread Betting on Shares
Where to Spread Bet on Microsoft
Many of the larger spread betting companies let investors take positions on stocks and shares that are listed on US stock exchanges.
The table below shows the companies that offer spread betting on shares and the typical minimum stake.
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| Shares Spread Betting |
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| Shares (min stake) |
£1 |
£1 |
£1 |
£1 |
£0.50 |
£0.50 |
£1 |
Shares spread betting may also be available with other companies - notes.
US Stock Market News and Analysis
For the latest financial news and US stock market analysis see:
Microsoft Spread Betting Prices and Charts
If you are looking to take a position on the Microsoft share price then note that the following firms offer spread bets on the shares that make up the Dow Jones as well a wide selection of other US listed shares.
Nearly all spread betting firms give their clients free access to a charting package. When a company offers a price on a given market they nearly always also offer an accompanying chart for that market.
The charting packages will vary between the different firms but most packages tend to come with overlays and indicators like MACD, Bollinger Bands, Parabolics and Stochastics.
Investors can normally also choose from a range of time periods, i.e. so that they can easily view 2, 5, 10 and 30 minute charts in addition to the hourly and daily charts that many investors have come to expect.
On top of this, investors can often choose between candlestick, area, line and bar charts.
How to Financial Spread Bet on Microsoft
As an example, let's say that you want to trade Microsoft, so you look on a financial spread betting website, e.g. InterTrader, and are presented with the real-time market price:
Here is what you can expect with a spread bet...
| The Spread Trading Market: | Microsoft Rolling Daily |
| The Price: | $25.71 - $25.76 |
| How the Market Works: | You can bet on the Microsoft Rolling Daily market moving:
Higher than $25.76, or
Lower than $25.71
This is a 'Rolling Daily' spread betting market which means that 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 trading session.
Note: if the trade is rolled over then you will either be credited or debited for overnight financing depending on whether you are speculating on the market to fall or rise.
To learn more see Rolling Spread Bets. |
| Traded Units: | Bets on the Microsoft shares spread betting market are priced in £x per cent.
Where a cent is $0.01 of the share's price movement.
E.g. if Microsoft changes by 50¢ ($0.50) then you would lose or win 50 multiples of your stake. |
| Stake: | You decide how much you are going to trade per cent, e.g. £1 per cent, £5 per cent, £20 per cent etc. |
| Staking Example: | If, for example, you chose a stake of £4 per cent and Microsoft moves by $0.31 (31¢), you would win / lose £4 per cent x 31¢ = £124. |
Worked Trading Example | Taking a Bullish View of Microsoft
Spread trading on the US share to increase
| You Now Work Out Whether to Buy or Sell: |
Microsoft to move:
Higher than $25.76? or
Lower than $25.71?
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| Let’s Say You Want to Go Long: |
Higher than $25.76 |
| You Select How Much to Risk, Choosing: | £3 per cent |
| What Happens Now? |
- You make £3 for every cent ($0.01) Microsoft goes higher than $25.76
- You will make a loss of £3 for each cent ($0.01) Microsoft moves below $25.76
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| When Speculating on a Market to Go Up Your P&L = | (Settlement Price - Opening Price) x stake per cent |
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| Trading Example 1 | Microsoft moves higher and the market is revised and changes to $26.15 - $26.20. |
| Time to Take Your Profit? | You may decide to leave your bet open or close it and take your profit. In this case you opt to settle your position by selling the market at $26.15. |
| Your P&L = | (Settlement Price - Opening Price) x stake per cent |
| ($26.15 - $25.76) x £3 per cent |
| $0.39 x £3 per cent |
| 39¢ x £3 per cent |
| Your P&L = | £117 profit |
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| Trading Example 2 | Microsoft drops and the spread betting market moves to $25.33 - $25.38. |
| Close and Restrict the Loss? | You may decide to leave your position open or close it in order to restrict your losses. In this example you decide to settle your position and sell the market at $25.33. |
| Your P&L = | (Settlement Price - Opening Price) x stake per cent |
| ($25.33 - $25.76) x £3 per cent |
| -$0.43 x £3 per cent |
| -43¢ x £3 per cent |
| Your P&L = | -£129 loss |
Trading Example | Going Short of Microsoft
Financial spread betting on the US share to decrease
| You Now Choose Whether to Buy or Sell: |
Microsoft to push:
Higher than $25.76? or
Lower than $25.71?
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| Let's Assume You Want to Go Short: |
Lower than $25.71 |
| You Select Your Stake Size, Let's Say You Opt For: | £2 per cent |
| So What Happens Now? |
- You will make a loss of £2 for each cent ($0.01) Microsoft increases above $25.71
- You make £2 for each cent ($0.01) Microsoft moves lower than $25.71
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| When Spread Betting on a Market to Fall Your P&L = | (Opening Price - Settlement Price) x stake per cent |
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| Trading Example 3 | Microsoft falls and the financial spread betting market adjusts and moves to $25.22 - $25.27. |
| Close and Take a Profit? | At this point, you could choose to let your spread bet run or close it, i.e. close your trade to lock in your profit. For this example, you choose to settle your bet and buy the market at $25.27. |
| Your P&L = | (Opening Price - Settlement Price) x stake per cent |
| ($25.71 - $25.27) x £2 per cent |
| $0.44 x £2 per cent |
| 44¢ x £2 per cent |
| Your P&L = | £88 profit |
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| Trading Example 4 | Microsoft rises and the spread trading market becomes $26.15 - $26.20. |
| Time to Restrict the Loss? | At this point, you can decide to keep your bet open or close it, i.e. close your trade and limit your loss. For this example, you opt to settle your position by buying at $26.20. |
| Your P&L = | (Opening Price - Settlement Price) x stake per cent |
| ($25.71 - $26.20) x £2 per cent |
| -$0.49 x £2 per cent |
| -49¢ x £2 per cent |
| Your P&L = | -£98 loss |
Microsoft Notes:
- Financial spread betting market price from InterTrader: 6 December 2011
- Many spread betting companies will also let you financial spread bet on Microsoft in euros per cent and US dollars per cent
- Financial spread betting also lets you access a wide range of other markets, for more details also read:
Demo Accounts for Spread Betting on Microsoft
The companies listed below all offer free practice accounts. Investors can use the demo accounts to test trading theories and/or to become more familiar with trading markets like Microsoft.
Spread Betting on Shares
Here at Spread-Betting.org we offer a wide range of trading guides that include price comparisons and worked trading examples. For a detailed looked at equities trading see spread betting on shares.
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Financial Spreads - tax free* trading on over 2,500 spread betting markets. With a Financial Spreads Account you can trade commission free, 24 hours a day on stock market indices, forex, shares commodities and...read review » Financial Spreads.
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With financial spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital. Please familiarise yourself with the risks that are involved and before trading, ensure that financial spread betting matches your investment objectives. Seek independent advice where necessary.
Spread Betting on Microsoft - edited by MJ, 05 January 2012.
For related pages and articles see:
Spread Betting on Microsoft - guide last updated: 05 January 2012
Spread Betting on Microsoft - Guide to spread betting on Microsoft shares, including which firms provide spread betting on Microsoft, US share prices and charts, how to spread bet on Microsoft, plus a review of US shares spread betting and ...more: Spread Betting on Microsoft.
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With spread betting you can lose more than your original stake or investment. Spread betting carries a high level of risk to your capital so please familiarise yourself with the risks that are involved and, before trading, ensure that spread betting matches your investment objectives. Seek independent advice where necessary.
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* Based on current UK tax law. Tax law may change and can differ depending on your personal circumstances.
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