Trade Whitbread Shares

Whitbread (WTB.L)

About

Whitbread PLC is the UK's largest hotel and restaurant company operating market-leading businesses in the budget hotels and restaurant sectors. Its brands include Premier Inn, Beefeater, Table Table, Brewers Fayre, Taybarns and Costa Coffee.

Industry

Restaurants & Bars

Website

www.whitbread.co.uk

Trading Options

Financial Spread Betting
Contracts For Difference
Share Dealing / Stockbroker

Whitbread and Market Latest News


Warning: include() [function.include]: URL file-access is disabled in the server configuration in /home/indepen3/public_html/investment_guide/share_dealing/trade_shares_whitbread.php on line 107

Warning: include(http://www.independentinvestor.co.uk/extras/share_news.php?rss_url=http://uk.finance.yahoo.com/rss/headline?s=WTB.L) [function.include]: failed to open stream: no suitable wrapper could be found in /home/indepen3/public_html/investment_guide/share_dealing/trade_shares_whitbread.php on line 107

Warning: include() [function.include]: Failed opening 'http://www.independentinvestor.co.uk/extras/share_news.php?rss_url=http://uk.finance.yahoo.com/rss/headline?s=WTB.L' for inclusion (include_path='.:/usr/lib/php:/usr/local/lib/php') in /home/indepen3/public_html/investment_guide/share_dealing/trade_shares_whitbread.php on line 107

Whitbread: 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 Whitbread shares (Whitbread share price is 1400p). Supposedly, you think that Whitbread shares will go up by 10% in one month.

Calculations

Spread Betting

CFD

Share

Number of Shares Equivalent

1,429

1,429

71

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


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