Trade Admiral Group Shares

Admiral Group (ADM.L)

About

Admiral Group is a leading car insurance provider. Admiral Group brands include Elephant.co.uk, an online car insurance service, Gladiator is the commercial vehicle insurance broker that was launched in April 1998 and Diamond was created for women in response to a need in the market place for insurance specifically for young women drivers.

Industry

Insurance Brokers

Website

www.admiralgroup.co.uk

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

Admiral Group and Market Latest News


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Admiral Group: Financial Spread Betting vs CFD vs Share Dealing

Table below compares Financial Spread Betting, Contract For Difference and Share Dealing trading. For simplicity we use the average brokerage fees to calculate the profit/loss if £1,000 available for investment in Admiral Group shares (Admiral Group share price is 750p). Supposedly, you think that Admiral Group shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

2,667

2,667

133

Shares go up by 10% in 1 month, Gross Profit

£2,000

£2,000

£100

Commission to open position (buy)

£60

£15

£12

Commission to close position (sell)

£0

£15

£12

Total Commission

£60

£30

£24

Financing for one month (5% LIBOR rate)

£108

£108

£0

Tax (20% band)

£0

£372

£15 + £5 (Stamp Duty)

Net Profit

£1,832

£1,490

£56


Admiral Group: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Admiral Group shares, they are more suitable for short and medium term investments and cover a wide range of markets, including shares, indices, commodities and currencies. Share investing, on the other hand, is a conservative and old way of gaining financial independence and preserving capital. Even though some stockbrokers offer credit facilities it is very rare and not popular amongst private investors.

Risk Warning: Financial Spread Betting and Contracts For Difference (CFDs) are leveraged products and carry a high level of risk to your capital. You may lose more than your initial investment. Share price can go down as well as up and returns on investments are not guaranteed.