Trade Hammerson Shares
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Hammerson and Market Latest News
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Hammerson: Financial Spread Betting vs CFD vs Share Dealing Comparison
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
Hammerson shares (Hammerson share price is 550p). Supposedly, you think that Hammerson shares will go up by 10% in one month.
| Calculations |
Spread Betting |
CFD |
Share |
Number of Shares Equivalent |
3,636 | 3,636 | 182 |
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 |
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Hammerson: Financial Spread Betting and Contracts For Difference (CFDs) are margined (or leveraged) products and let you go long (buy) or short (sell) with Hammerson 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.
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