Compare Spread Betting Companies
| The spread betting week ahead: Netflix, eHealth report earnings |
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| Written by Will Peters |
| Monday, 25 April 2011 11:02 |
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Trading is light across global markets today with London closed. But, this will allow UK based spread betting traders the opportunity to set themselves up for some potentially big spread betting plays. "We enter our busiest earnings week with expectations for generally better than expected prints out of the group on the back of Google and Yahoo! results so far. Considering the run up in our JII YTD, however (up 11% vs. S&P 500 up 3.2%), we expect stock reactions to vary. We remain most positive on EBAY and VPRT," says a morning note from investment bank Jefferies. So, what pointers can Jefferies offer those looking to take advantage of earnings with their spread betting accounts? Netflix reports on the 25th of the 4th: "We estimate 1Q revenue of $696.7M and GAAP EPS of $1.11 vs. consensus of $704M and $1.07, respectively, with a bias to the upside. We estimate sub count at 3/31 at 23.5M, with a record net adds of 3.5M vs. guidance of 22.7-23.7M. 2Q revs/EPS likely inline with guidance, net sub adds key to direction of stock." eHealth reports on the 26th of the 4th: "The company continues to be afflicted by low visibility in the core IFP business due to weaker commission environment going forward, and it is too early to see how much the company can convert its primarily lead-gen medicare business into what could be a potentially lucrative enrollment business over time. We expect revenues and NEPS (excluding stock comp.) to come in line with consensus at $34.5M and $0.11, respectively." Trade on today's markets will be thin on the ground with London being closed for the easter weekend. The result is most spread betting companies will be offering a limited service. Indeed, its is not advisable to trade today as such conditions inevitably see spreads on financial products shoot up. Spreads should return to normal as liquidity returns over coming days.
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Spread Betting Lessons - Cut out the emotion!
Oh, and also a lesson why the Stop Loss is your Friend !
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Spread betting at a glance
- Spread betting is a financial product that allows retail and professional investors access to the widest possible number and types of exchange traded instruments.
- The spread betting company that you trade through is the market maker, the trader does not actually take ownership of any underlying product. Hence, most jurisdictions do not charge stamp duty on any gains.
- The notion that you don't actually own the product ensures spread betting platforms are able to almost instantaneously execute orders on behalf of their client.
- Spread betting is a leverage product, your money is able to realise you impressive gains as your earnings come in multiples of the actual change in the underlying product that you are trading.
- This is of course where spread betting can also go spectacularly wrong. Losses can be huge, therefore we advise those that are spread betting, or are looking to go into spread betting, to enter each trade with a well thought out strategy. This also means setting a pre-determined stop loss so that losses are cut at a manageable level.
- This website is here to offer more insight into this fascinating trading instrument.



