Spread Bet on IMI Shares | Imperial Metal Industries
IMI stands for Imperial Metal Industries, a British-based international engineering company. It has a history going back to the mid-19th century, when it traded under the name of Kynoch. In its early days it produced percussion caps, and even bicycle components, but by the 20th century it had developed some experience in metallurgy. It was one of the components of the iconic ICI (Imperial Chemical Industries) which was created in 1927.
The current name was adopted in 1962, and the company was listed on the London Stock Exchange in 1966 with ICI retaining a majority shareholding for a while. IMI became totally independent in 1978. During the 1990s it specialized more, getting rid of operations such as metal founding and smelting. It is head-quartered in Birmingham.
The current operations are broken down into five divisions, and the main focus is on fluid controls and retail dispense areas. Fluid controls covers a range of products, including pneumatics, climate control, and severe service valves which are used in facilities such as power plants and oil and gas production facilities.
The five divisions are: –
- Severe service, which includes control valves for hostile environments.
- Fluid power, including controls for industrial and manufacturing purposes.
- Indoor climate, including energy management and building controls.
- Beverage dispensing, products for the retail environment.
- Merchandising systems, with point of sale displays.
IMI has undertaken some acquisitions, expanding its severe service expertise, and this division has been flourishing that with the demand for such products. Fluid power relies on growth of commercial trucking amongst other things, so this part of the business has been level, as has indoor climate, which despite the poor new construction figures maintains some business by competing in building refurbishments.
As an engineering company, IMI can be expected to have reasonable growth continuing into the future and should be open to meaningful technical analysis of its charts without any surprises.
How to Spread Bet on IMI Shares: Rolling Daily
IMI is an international engineering company, specializing in fluid products, and as a supplier to many industrial companies and processes it is dependent on the overall health of the economy. The current price for a daily rolling spreadbet is 934.1 – 935.9. If you think that the price is going to go up, you could place a buy bet for £8 per point, and this would go on at 935.9.
Assuming you are correct, after a few days you might find that the price had risen to 982.6 – 984.2, and you could decide to close your spread bet and collect your winnings. The bet was opened at 935.9, and it closed at the selling price of 982.6. Working it out, that means you have gained 46.7 points. With your bet of £8 per point, that amounts to winnings of £373.60.
Whenever you place a bet, you must consider that it may not win. No one has developed a system that cannot fail, and the way to make a profit overall is to keep your losses small and get as much as you can out of your winning positions. Say the price dropped to 897.2 – 898.9, you could close your bet and accept your loss, rather than holding on and risk riding the price down further to lose more. Your bet would close at the selling price of 897.2, and as it started at 935.9 your total loss is 38.7 points. That amounts to £309.60 for your chosen stake.
One way that many traders choose to protect their capital is to use a stop loss order, telling their spread betting broker to close the bet if it reaches a certain level of loss. In this case, a stoploss order might have closed the bet earlier at 912.6 – 914.3. The price of the close is 912.6, and taking that away from 935.9 you would have lost 23.3 points. At £8 per point, that would be a loss of £186.40.
IMI Futures Based Bet
The international engineering company IMI has had some ups and downs, but is generally in growth mode in recent years, as you can see from this monthly chart: –
The current price for the far quarter futures based spread bet is 932.6 – 943.9. You might be thinking that the price is due for a reversal in the next few weeks, and therefore place a short or sell bet on this security for £5 per point. If you are right, the price could drop to 863.1 – 873.2. If you then close your bet and take your profit, you can work out how much you won like this.
Your bet was opened at the selling price of 932.6, and it closes at the buying price which is 873.2. 932.6 less 873.2 is 59.4 points. You staked £5 per point, so this is £297 that you would have won.
Whenever you trade on the markets, you must realize that you can easily have a losing position, no matter how carefully you select your bet. If the price had gone up after you placed your short bet, you might have chosen to close it when it reached 971.3 – 980.7. Your loss is calculated from 980.7 minus 932.6, 48.1 points, which works out to £240.50.
Many spread traders use the stop loss order to automatically close a losing trade, which means they do not have to keep watching the markets all the time. You usually set a stoploss order when you take out the initial trade, and you can tell your spread betting provider the price at which you want the bet closed. Unless you pay extra with a larger spread, the price is not guaranteed but will usually be close to what you request. Say this bet closed on a stop loss order at 960.2 – 969.8, you would have lost 969.8-932.6 points, or 37.2 points, which is £186.
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