Trade BAE Systems Shares

BAE Systems (BA.L) About BAE Systems is a global company engaged in the development, delivery and support of advanced defence and aerospace systems in the air, on land and at sea. They have strong positions in each of six home markets – Australia, Saudi Arabia, South Africa, Sweden, UK, US – and have organised the business to reflect this. Industry Defense Website www.baesystems.com Trading Options Financial Spread Betting Contracts For Difference Share Dealing / Stockbroker

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BAE Systems: 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 BAE Systems shares (BAE Systems share price is 450p). Supposedly, you think that BAE Systems shares will go up by 10% in one month. Calculations Spread Betting CFD Share Number of Shares Equivalent 4,444 4,444 222 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

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