In the provided spread betting scenario, what is the value of the investor's gain when the FTSE 100 rises?
Understand the Problem
The question is asking for the financial outcome of a spread betting scenario involving the FTSE 100 index, specifically focusing on the gain when the index rises. It is likely to involve calculating the gain based on specific spreads or bets placed by the investor.
Answer
Multiply the amount bet per point by the points gained.
The investor's gain in a spread betting scenario is calculated by multiplying the amount bet per point by the number of points the market has moved in the direction of the bet.
Answer for screen readers
The investor's gain in a spread betting scenario is calculated by multiplying the amount bet per point by the number of points the market has moved in the direction of the bet.
More Information
In spread betting, gains and losses are determined by the amount staked per point of movement. As the market moves in the predicted direction, the gain is the product of the bet amount and the point movement.
Tips
A common mistake is not factoring in the spread or fees during calculations, which can affect the actual gain.
Sources
- Spread betting explained: Understand how it works - CMC Markets - cmcmarkets.com
- What is Spread Betting & How Does it Work? - Admiral Markets - admiralmarkets.com
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