With a quarterly bet
In this example we look at spread betting on
the price of Gold. You should read this example in
conjunction with our Spread Betting on
Commodities information page.
Finspreads quotes Gold (December Contract)
910.2- 910.7 US dollars per ounce.
If you think the price of Gold is too high and
will fall, you sell at 910.2 (the bid price).
If you were to trade at £3 per point and hold
your position until expiry:
On expiry the December Gold contract closes at
920.10.
You were incorrect in thinking that the price would fall, and
your loss is calculated as follows:
910.2 (opening price of your trade) - 920.10 (closing price of your
trade) = 99 points.
99 points x £3 (stake) = £297 loss.
As with all other bets, quarterly bets on commodities can be
closed at any time – they do not need to be held until
expiry. You can take your profit, or loss, at any time.
|