Trade Rexam Shares

Rexam (REX.L)

About

Rexam is the world's second largest consumer packaging group and the world's leading beverage can maker. We serve a number of markets including the beverage, personal care, healthcare and food markets.

Industry

Containers & Packaging

Website

www.rexam.com

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

Rexam and Market Latest News

Yahoo! Finance: REX.L News
FTSE rally meets resistance as Rexam retreats (Other)
Pinewood Shepperton , the studio behind the James Bond movies, gained 6 to 150p yesterday as activist investment fund, Crystal Amber, upped its stake.
Prudential gains amid talk of strategic review [at Financial Times] (FT Times)
Prudential was among London's top performers on Thursday in a market otherwise dominated by corporate earnings news.
FTSE lower as weak banks offset upbeat UK results (Reuters MOLT)
FTSE lower as weak banks offset upbeat UK results (Other)
Copyright (c) 2010 Yahoo! Inc. All rights reserved.

Rexam: 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 Rexam shares (Rexam share price is 550p). Supposedly, you think that Rexam 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


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