This example shows how spread betting on sectors works.
Our DFB price for the Banking sector stands at 4934-4944.
This means you can open a 'sell' bet at 4934 or a 'buy' bet at 4944.
|You think the market is due to fall, so you choose to 'sell'.||You think the market is going to rise, so you choose to 'buy'.|
|You 'sell' £15 per point at 4934.||You 'buy' £15 per point at 4944.|
|The market starts to drop and you decide to take your profit.||The market starts to fall and you choose to cut your losses.|
|The price we quote is 4862-4872.||The price we quote is 4884-4894.|
|To close your 'sell' bet you 'buy' at the top end of the spread.||To close a 'buy' bet you simply 'sell' at the bottom end of the spread.|
|You 'buy' £15 per point at 4872.||You 'sell' £15 per point at 4884.|
Your profit is calculated as follows:
Opening price 4934
Closing price 4872
Profit: 62 x £15 = £930
Your loss is calculated as follows:
Opening price 4944
Closing price 4884
loss: 60 x £15 = £900
Spread bets are leveraged products. Spread betting may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.