pedro01
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Hi All
I am taking tentative steps into the world of financial spread betting.
What i am getting confused on is the prices...
I know I should be concerned about 'the spread' and not get involved if the spread is too wide. The thing is - the spread between which 2 numbers...
Let's take Rolls Royce - current Price 402
Finspreads shows me
June - Sell - 408, Buy 411
Mar - Sell 401, Buy 404
Now - it's trading on June that confuses me. Both prices are ABOVE the current price. In other stocks, Both prices are BELOW the current price.
So - if I see Rolls Royce Short, I will get the price of 408 which is 6 points away from the current price.
Now - if the underlying price stayed the same & I cancelled the trade by buying Rolls Royce at 411, I would be down by 3 points.
So - when you look at whether the 'spread cost' is too much for a trade, do you compare the current price with the sell price for that month or just the difference between the Sell & Buy Price ?
It seems to me that the latter makes sense but I am confused.
I am taking tentative steps into the world of financial spread betting.
What i am getting confused on is the prices...
I know I should be concerned about 'the spread' and not get involved if the spread is too wide. The thing is - the spread between which 2 numbers...
Let's take Rolls Royce - current Price 402
Finspreads shows me
June - Sell - 408, Buy 411
Mar - Sell 401, Buy 404
Now - it's trading on June that confuses me. Both prices are ABOVE the current price. In other stocks, Both prices are BELOW the current price.
So - if I see Rolls Royce Short, I will get the price of 408 which is 6 points away from the current price.
Now - if the underlying price stayed the same & I cancelled the trade by buying Rolls Royce at 411, I would be down by 3 points.
So - when you look at whether the 'spread cost' is too much for a trade, do you compare the current price with the sell price for that month or just the difference between the Sell & Buy Price ?
It seems to me that the latter makes sense but I am confused.