Spread Betting on Microsoft
Spread Betting

Spread Betting on Microsoft

Spread Betting on Microsoft

The spread betting guide to trading US stocks and shares like Microsoft.

  Where to Spread Bet on Microsoft   Where to Spread Bet on Microsoft
  Stock Market News and Analysis   Stock Market News and Analysis
  Microsoft Spread Betting Prices and Charts   Microsoft Spread Betting Prices and Charts
  How to Spread Bet on Microsoft   How to Spread Bet on Microsoft
  Demo Accounts for Spread Betting on Microsoft   Demo Accounts for Spread Betting on Microsoft
  Spread Betting on Shares   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.

Shares Spread Betting
Financial Spreads - Shares GFT - Shares IG Index - Shares InterTrader - Shares City Index - Shares ETX Capital - Shares Capital Spreads - Shares
Shares Spread Betting Shares spread betting markets available with Financial Spreads? Shares spread betting markets available with GFT? Shares spread betting markets available with IG Index? Shares spread betting markets available with InterTrader? Shares spread betting markets available with City Index? Shares spread betting markets available with ETX Capital? Shares spread betting markets available with Capital Spreads?
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.

US Shares Spread Betting 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:

Microsoft Rolling Daily
: $25.71 - $25.76

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:

  Spread Betting Higher than $25.76, or
  Spread Betting 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:

  Spread Betting Higher than $25.76? or
  Spread Betting Lower than $25.71?

Let’s Say You Want to Go Long:   Spread Betting 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
When Speculating on a Market to Go Up Your P&L = (Settlement Price - Opening Price) x stake per cent
 
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
 
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:

  Spread Betting Higher than $25.76? or
  Spread Betting Lower than $25.71?

Let's Assume You Want to Go Short:   Spread Betting 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
When Spread Betting on a Market to Fall Your P&L = (Opening Price - Settlement Price) x stake per cent
 
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
 
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:


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.



Financial Spreads Review
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.



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.







Financial Spreads

 
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.

* Based on current UK tax law. Tax law may change and can differ depending on your personal circumstances.
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