Range of Markets

Financial Spread Betting Markets Explained

We have collated a detailed description of all our financial spread betting markets, providing you with detailed market and trade information plus descriptions to explain more about each particular instrument.

UK Long Gilt, Jun

Bonds - UKLongGilt
BondFixedInterest
From 3 *
(Shares only)
0.01
29/05/2024
0800-1800
£0.2
0.01(4 if guaranteed)
3
None
NTR: Position (GBP) % ***
0 - 512
.30
512 - 1,023
2.50
1,023 - 2,047
5.00
2,047 +
15.00
Limited Risk NTR: Position (GBP) % ***
0 - 256
3.33
256 - 512
5.00
512 + 0
15.00
Spread Premium: Stake (GBP) Multiplier
0 - 210
1
210 - 430
1.17
430 - 1,000
2
1,000 +
20
Mar, Jun, Sep, Dec
EURONEXT LIFFE official settlement on last day of trading +/- spread

*Any spread width shown in brackets is the spread which will be applied outside of the market’s normal trading hours.

**Funding applied on daily basis to ‘Daily’ and ‘Daily Futures’ markets only.

***When placing a new trade the NTR Multiplier is calculated from the mid-point of the current price. E.g. if a share is currently trading at 199.7 – 200.3 with an NTR multiplier of ‘10% of the current price’ then the NTR Multiplier at that time will be 20 (10% of 200). Once you have an open position in a market, if that position is a buy it will be marked to the current bid price and therefore the NTR Multiplier will be calculated from the bid price. If the position is a sell it will be marked to the offer price and therefore the NTR Multiplier will be calculated from the offer price. Please note this means that NTR Multipliers will vary as the price and bid-offer spread of the market moves.


Market Description

UK Long Gilts are government-backed bonds issued by the Debt Management Office in the UK, and are named so because the original certificates had gilded edges.

You can place a financial spread bet on Long Gilt futures with Spreadex to speculate on the movement of long-term interest rates (which is different from the bank base rate).

It is important to understand the inverse relationship between bond prices and yields. As bond prices rise, long term interest rates will fall.

When placing a financial spread bet on bonds, you would place a ‘buy’ trade on Long Gilt futures if you think rates will fall and a ‘sell’ trade on Long Gilt futures if you expected rates to rise.

In general terms, government bonds are lesser known products when it comes to financial spread betting but they can still attract plenty of interest, especially in uncertain economic times with the collapse of the financial markets and interest rates, for example.


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