Trade British Airways Shares

British Airways (BAY.L)

About

British Airways is one of the world's largest international airlines, carrying in its last financial year to March 31, 2008 over 33 million passengers worldwide. Also, one of the world’s longest established airlines, it has always been regarded as an industry-leader.

Industry

Airlines

Website

www.bashares.com

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

British Airways and Market Latest News


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British Airways: 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 British Airways shares (British Airways share price is 200p). Supposedly, you think that British Airways shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

10,000

10,000

500

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


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