Have you seen what happened to the London Capital Group share price in the past few days? The sudden ramp-up in share price allowed me to bank this quick profit:
I cashed in those few chips so as to demonstrate the handy IG P&L Breakdown Report that shows you exactly how you did — including financing costs — on each of the positions you have closed.
I banked a more substantial quick profit on LCG in my SIPP, but in any case you know that cashing in my chips early is not really my style. In both cases (SIPP and spread betting) I have longer-standing position trades, as illustrated by the following IG chart:
Notice that I have more-or-less recouped the loss on my first ill-fated position (the higher solid line) and that I am guaranteed a profit on my second averaged-down position (the lower solid line) thanks to my guaranteed stop order (the dashed line). I could still come out of this with a small loss overall, but it’s guaranteed to be less than the quick profit I have already banked… as indicated at the beginning of this article.
If you want your charts to show your in-play trades like this, you need to be signed up with IG.
I’ve heard rumours that the LCG price increase is due to potential bids from multiple rival spread betting firms, so the price could yet move higher; and in historical terms– it has a long way to go.
Oh, and in case you’re wondering, the subject of this article (London Capital Group) is itself a spread betting platform provider that underpins two of my favourite spread betting brands: Capital Spreads and InterTrader.
Two Steps to Better Spread Betting:
1) Buy the Better Spread Betting Book
2) Sign up with Capital Spreads, IG, ETX Capital, or Spread Co
Disclaimer: this posting is for general education only; it is not trading advice.