Example: 'Selling' September House Prices
A simple way to gain exposure to the UK housing market.
It is August 2010 – the UK housing market appears to have turned a corner, but you believe it is going to fall further over the next year. Our price for the September 2011 monthly survey (in £1000s) is 167.2-169.7.
As you believe house prices will start to fall, you decide to ‘sell’ £1000 per point at 167.2.
Over the next few months, the housing market takes a turn for the worse, and the Halifax house price survey figures start to drop. In June, Halifax gives the average UK house price at £163,049, and on 25 July 2011 our quote for September is 160.0-162.0. You are unsure whether the fall will continue and decide to play it safe, ‘buying’ £1000 per point at 162.0 to close.
The result
Profit on deal
| Opening level | 167.2 |
| Closing level | 162.0 |
| Difference | 5.2 |
Profit: 5.2 x £1000 per point = £5200
Remember of course that if the market had moved against you, you may have lost more than your initial deposit.
Ready to spread bet?
Open an account online in minutes and start dealing on house prices.
Apply Online