Spread Betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.8% of retail investor accounts lose money when trading Spread Betting and CFDs with this provider. You should consider whether you understand how Spread Betting and CFDs work and whether you can afford to take the high risk of losing your money

FTSE100

HOW CAN YOU TRADE THE FTSE 100 WITH SPREAD CO?

At Spread Co, you can trade the FTSE 100 using spread betting or Contracts for Difference (CFDs), allowing you to speculate on the index’s price movements without owning the underlying assets. Here’s how it works:

  1. Spread Betting on the FTSE 100:
    • Spread betting allows you to place a “bet” on whether the FTSE 100 index will rise or fall.
    • You decide your stake per point movement, meaning your profit or loss depends on how far the FTSE 100 moves in your chosen direction.
    • Spread betting on the FTSE 100 with Spread Co is tax-free in the UK and is a leveraged product, so you only need to put down a small initial deposit (margin) to control a larger position.
    • You can also Spread Bet the individual constituents of the FTSE100, for example Barclays Plc, Rolls Royce Plc, AstraZeneca, HSBC etc.
  2. Trading CFDs on the FTSE 100:
    • CFDs let you trade the price movement of the FTSE 100, offering the flexibility to go long (buy) or short (sell) the index.
    • Like spread betting, CFDs are leveraged, so you only need a fraction of the total trade value to open a position. This can magnify both gains and losses, as profits and losses are based on the full position size.
    • With CFDs, you can offset any  losses against capital gains profits for tax purposes, you can also facilitate the use of CFDs to hedge and diversify portfolios.
  3. Risk Management Tools:
    • Spread Co provides risk management tools, including stop-loss and limit orders to help you control potential losses.
  4. Access to Real-Time Market Data and Tools:
    • Spread Co offers real-time data, charts, and analysis tools for trading the FTSE 100, helping you make informed trading decisions.
  5. Low Cost and No Commissions:
    • Spread Co’s low-cost structure includes competitive spreads on the FTSE 100 with no hidden fees or commissions on spread betting.

Spread Co provides a user-friendly platform with support, tools, and low-cost trading options for FTSE 100 trading through both spread betting and CFDs via a desktop, Tablet and Mobile.

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WHY TRADE INDICES WITH SPREAD CO?

Need assistance with setting up your account, utilising Spread Co’s tools, or accessing the latest market news? At Spread Co, dedicated relationship management is included at no extra cost. We aim to ensure you not only choose Spread Co but also remain with us.  Our dedicated team is a key reason why we are the right choice for your trading needs. Please see our reviews here.

 

  • Our spreads are from as low as 0.6 points during normal market hours.
  • Trade from a minimum stake of 10p.

WHAT IS THE FTSE100?

The FTSE 100, or Financial Times Stock Exchange 100 Index, represents the 100 largest publicly traded companies listed on the London Stock Exchange (LSE) by market capitalisation. The index was established in 1984 and acts as a key indicator of the UK’s economic health and stock market performance. It includes prominent companies from various sectors, such as finance, healthcare, consumer goods, and energy.

Investors often use the FTSE 100 as a benchmark for the UK stock market, and global traders track it for its impact on international markets. Financial analysts calculate it in real-time during trading hours, and it reflects the combined market value of its constituent companies. Changes in the index can indicate investor sentiment and economic trends, making it an essential tool for traders and analysts.

HOW IS THE FTSE100 CALCULATED?

The FTSE 100 is calculated using a free float market capitalisation method. Here’s a summary of how it work’s.

  • Market Capitalisation: Analysts assign each company in the FTSE 100 a market capitalisation by multiplying the company’s current share price by the number of outstanding shares.
  • Free Float Adjustment: The market adjusts its capitalisation to reflect only the shares available for trading on the open market. This is known as the “free float.” For example, if a company issues a total of 1 million shares, but insiders or long-term holdings possess 400,000 of those shares, only the 600,000 shares that the public trades are considered in the calculation.
  • Index Calculation: To calculate the FTSE 100 index, analysts take the total free float market capitalisation of all 100 companies and divide it by a divisor. Periodically, the team adjusts this divisor to account for changes in the number of shares, corporate actions (like stock splits or mergers), and other factors that could affect the index’s level. This adjustment ensures that the index remains consistent over time.
  • Real-Time Calculation: During trading hours, the system updates the FTSE 100 in real-time, reflecting the latest stock prices of the constituent companies. As stock prices fluctuate, the index rises or falls accordingly.
  • Rebalancing: Analysts review the FTSE 100 quarterly, and they may add or remove companies based on their market capitalisation. Companies must meet certain criteria to join the index, such as being listed on the London Stock Exchange and having a significant free float.

This method provides a clear and up-to-date reflection of the performance of the largest companies in the UK stock market.

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Reliable Platform

With our platforms you can trade wherever you are – at home, in the office, or when you’re out and about.

0% financing on short index positions

Some companies will charge you to hold a short index position. At Spread Co we won’t.

Powerful Charting

Spread Co charts are powered by TradingView Inc.

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