Trade Associated British Foods Shares

Associated British Foods (ABF.L) About Associated British Foods is a diversified international food, ingredients and retail group with sales of £8.2 billion and over 96,000 employees in 44 countries. The group is one of Europe's largest food companies with a wide range of successful brands and products in the food sector. Industry Food Products Website www.abf.co.uk Trading Options Financial Spread Betting Contracts For Difference Share Dealing / Stockbroker

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Associated British Foods: 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 Associated British Foods shares (Associated British Foods share price is 750p). Supposedly, you think that Associated British Foods 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

Associated British Foods: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Associated British Foods 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.