How to Spread Bet RBS Shares Following Better Than Expected Q1 Results
LONDON, May 8, 2012 /PRNewswire/ --
You can take a position on RBS shares with financial spread betting provider City Index following better-than-expected first-quarter profits on Friday 4 May 2012.
Below, I explain how part-nationalised lender, Royal Bank of Scotland (RBS), is claiming to be on the road to recovery following repayment of bail-out loans from British and US taxpayers - however, has the affected investor confidence in the marketplace?
I also provide a clear and concise example of how you can take a position on the RBS share price and potentially profit - regardless of the market's direction - with financial spread betting provider City Index.
Read my full article at http://www.cityindex.co.uk/spread-betting/article/how-to-spread-bet-rbs-shares-following-better-than-expected-Q1-results.aspx
What is financial spread betting?
Before I show you how you can take a position on RBS shares, let me answer the age old question of: 'What is financial spread betting?'
Financial spread betting is an easy way to take a position on over 12,000 financial instruments including indices, currencies and of course, shares.
Through City Index - one the leading providers of spread betting, CFD and forex trading - you can go both long and short on a market's share price, allowing you to net potential gains regardless of whether a market is moving up or down.
How to Spread Bet RBS Shares
Within the City Index spread betting platform, you'll find the RBS Group (LSE) DFT.
For example, let us say that as the market opened this morning, City Index were offering the RBS Group (LSE) DFT at a spread of 24.75/25.01 - it's sell and buy price.
Following better-than-expected first-quarter earnings, you feel confident that the share price will rise. However, you still have your resignations regarding their pre-tax loss.
You decide to watch the market closely for another hour and see that there is a gradual growth - so you decide to go long and buy.
As the market has risen, the new spread being offered is 25.02/25.10. You take a buy position of 25.10 at a £50 stake.
Unexpected Market Movements
You watch the market rise slightly over the next half an hour - feeling confident that you have made the correct trade. When it reaches 27.3, you decide to cash in your profits.
City Index is now offering the RBS Group (LSE) DFT at a spread of 26.9/27.7.
You sell back at 26.9 making a £90 profit.
This is because you bought at 25.10 for a £50 stake, so for every point that market moved in your favour, you netted a £50 profit.
When you sold back at 26.9, the market had moved in your favour by 1.8 points - so you made £90, i.e. 1.8 x £50 = £790.
Read my full article at http://www.cityindex.co.uk/spread-betting/article/how-to-spread-bet-rbs-shares-following-better-than-expected-Q1-results.aspx
Why spread bet with City Index
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.
SOURCE City Index
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