After one of the largest IPOs in history, www.cleanfinancial.com has launched a guide to spread betting on the value of Facebook shares.
The cleanfinancial.com Facebook guide covers where investors can speculate on the share price and which companies offer a free Demo account so investors can practice speculating on Facebook. The guide also discusses where investors can access live Facebook share price charts as well as a fully worked trading example.
According to cleanfinancial editor, Jenna Cutly, many investors will be interested in speculating on Facebook but they may have problems accessing the markets through a normal broker.
"A lot of UK investors will be thinking about taking a position on the Facebook stock. However, given that it's launched on the NASDAQ, many traditional stockbrokers may not offer the market.
"Spread betting offers investors quick access to numerous stocks and shares whether the shares are listed in the UK, US, Germany, France or Ireland. Some companies like FinancialSpreads.com even offer markets on shares listed in India and South Africa."
How to Spread Bet on Facebook Shares
On the day of the IPO, the Facebook shares launched at $38. Volatile trading saw the shares quickly move up more than 5% to trade at $40.33. At that point the spread betting companies might offer the Facebook spread betting market at $40.30 - $40.36.
If so, an investor could spread bet on the Facebook shares moving higher than $40.36 or lower than $40.30.
When spread betting on US equities like Facebook you trade in pounds per $0.01 of price movement. If you want to invest GBP2 per $0.01 and the Facebook share price moves $0.55 then there would be a difference to your profit/loss of GBP110. GBP2 per $0.01 x $0.55 = GBP110.
The new guide on cleanfinancial.com talks through a fully worked trading example.
http://www.cleanfinancial.com is a UK based financial spread betting website that was launched in 2006 and is designed to help both experienced traders and less experienced investors.
Cleanfinancial.com offers hundreds of individual trading guides which cover a range of markets from UK and US shares to forex markets like EUR/USD, commodities like gold, and stock markets indices like the FTSE 100.
Before trading, investors should be aware of the fact that financial spread betting is a leveraged form of investment and therefore it involves a high degree of risk to your funds.
Leveraged products like spread betting may not be suitable for every investor so only trade with funds that you can afford to lose. Where appropriate, investors should seek independent financial advice.