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Buying the Rolling
FTSE Spread
(FTSE Margin Factor =
£313)
- The FTSE rolling
spread bet is trading at 6488-6490
- You decide to Buy
£5 per point at 6490 (the higher side
of the spread or Buy price)
- Your initial margin
is 5 x 313 = £1565
- The FTSE rises to
6500-6502 and you decide to close you
position at 6500 (the lower side of the
spread or Sell price)
- You have made 10
points at £5 per point which equals
£50
Selling the Rolling FTSE Spread
- The FTSE rolling
spread bet is trading at 6488-6490
- You decide to Sell
£5 per point at 6488 (the lower
side of the spread or Sell price)
- Your initial margin
is 5 x 313 = £1565
- The FTSE rises to
6495-6497 and you decide to close your
position at 6497 (the higher side of the
spread or Buy price)
- You have lost 9 points
at £5 per point which equals £45
There is no commission
to pay on an Index spread bet.
Dividend adjustments are
made in cash: Opening Buy trade or Longs
receive the dividend equivalent in cash
over the ex date and Opening Sells or Shorts
pay the dividend
Finance rates apply on
Rolling Index bets. Opening Buys or Longs
pay finance and Opening Sells or Shorts
receive finance
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