Trade Old Mutual Shares

Old Mutual (OML.L)

About

Old Mutual operate primarily in the long-term savings market. This market is attractive and growing and has changed significantly over recent years. In particular it's no longer dominated by the traditional with-profits life assurance product.

Industry

Life Insurance

Website

www.oldmutual.com

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

Old Mutual and Market Latest News

Yahoo! Finance: OML.L News
London afternoon: Footsie off the top (ShareCast)
The Footsie drifted lower over the lunch time session though still remained in positive territory, thanks in large part to enthusiastic responses to results from heavy hitters AstraZeneca, BT and Reed Elsevier.
FTSE 100 movers: Results push market higher (ShareCast)
A raft of good results has boosted Footsie today.
London close: US gives Footsie a lift (ShareCast)
Sentiment improved after the US open following a sluggish start, helping Footsie close with modest gains.
London mid-morning: Footsie seeking direction (ShareCast)
Market Movers techMARK 1,665.00 +0.17% FTSE 100 5,311.45 -0.02% FTSE 250 10,100.67 +0.07%
Copyright (c) 2010 Yahoo! Inc. All rights reserved.

Old Mutual: 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 Old Mutual shares (Old Mutual share price is 140p). Supposedly, you think that Old Mutual shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

14,286

14,286

714

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


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