Spread Bet on Resolution Shares | Trade Resolution
When you are researching the company Resolution you must be sure that you include only the newest version of the company. The original Resolution PLC was sold to the Pearl Group in 2008, and the current company listed on the FTSE 100 is known as Resolution Limited. Resolution Limited is head-quartered in Guernsey, and works as a holding company for the business. Resolution Operations is a limited liability partnership head-quartered in London, and is effectively the operational company which employs the senior management.
Resolution Limited was set up to try and consolidate the British life insurance industry, consolidating existing providers, and spinning out the resulting company on the stock market. It was set up in 2008, and bought out Friends Provident in 2009, the first of three target insurance companies. As Friends Provident was in the FTSE 100, Resolution Limited took its place in the index. In 2010, Resolution bought AXA Sun Life Holdings Limited.
This monthly price chart shows the progress of Resolution Limited since its establishment in 2008. As you can see, it has generally been in a decline, with the price steadying around the time of acquisition of the two insurance companies. Resolution has highly experienced professionals in the industry, and the movement of the chart would seem to reflect the difficulty of the task which has been taken on.
As a spread better, it is as easy to make money from a decline in price as from an increase, so it does not matter whether the value is falling as shown at the moment, or if it picks up with further acquisitions. The important aspect is to anticipate the direction correctly, and for this you should rely on technical analysis, which is based on historic data, and on an anticipation of any news that will impact the share values.
Spread Betting Resolution Rolling Daily
Resolution is a company formed to amalgamate elements of the insurance industry, and it is run by industry experts. As such, it is sensitive to any news about achieving its stated aims. The current price for a rolling daily spread bet is 201.10 – 201.70. If you think that the price will go down, you could place a short bet at the selling price of 201.10, staking perhaps as much as £15 per point because the share price is so low.
If you are correct and the price goes down to a quote of 182.65 – 183.25, you could close out your winning bet and collect your profits. Your sell bet was placed at a price of 201.10, and it closed at the buying price of 183.25. 201.10 less 183.25 is 17.85 points. Multiplying by your stake of £15 per point, you would have won £267.75.
If you are not correct, the price might go up to a level where you feel you must close your spread trade and accept your loss before it becomes any greater. Perhaps the price goes up to 216.32 – 216.92, and you close your position. Working out your loss, 216.92 minus 201.10 is 15.82 points, and that works out to £237.30 lost.
Many spread traders use a stop loss order to help them close out losing positions in a timely manner. With a stoploss order, your spread betting company must close your losing bet when it reaches a level that you set, and it does not matter if you are able to watch the markets or not. The actual price that the spread bet closes at is not guaranteed, unless you pay extra in a higher spread for a guaranteed stop loss (GSL), but usually it will be close to the amount you set. Say that your stoploss order in this case closed your trade when the quote was 208.13 – 208.73. You lost 208.73 minus 201.10 points, and at your chosen stake this amounts to £114.45.
Resolution Futures Based Spread Bet
As a general rule of thumb, if you’re looking to hold your spread bet open for more than a few weeks, perhaps into months, then it may work out more economic to place a futures style bet rather than to use the rolling daily bet. The current quote for the far quarter for Resolution is 200.80 – 203.32. It is important to note that even with a futures style bet you can close the trade at any time, whether to capture your profit or to limit your losses.
If you think that the price of Resolution will go up, you could place a long spread bet at 203.32, wagering perhaps £20 per point. Should you be correct, and the price go up to 225.68 – 227.89, you might choose to close your spread trade and collect your winnings. The total number of points that you have made is from 203.32 to the selling price of 225.68. 225.68 minus 203.32 is 22.36 points. Multiplying by £20, you have won a total of £447.20.
If you are not correct in this spread bet, and the price falls after you place it, then you might decide to close your trade and accept your losses when the price goes down to 186.10 – 188.56. In this case, you have lost the number of points between your starting price of 203.32 and the closing price of 186.10, which is 17.22 points. For your wager, this works out to a loss of £344.40.
Many spread betters and traders use stop loss orders to take care of their losing trades, as the trade will be closed by the broker if it reaches a certain level of loss regardless of whether the trader is watching the markets. If you had used a stoploss order on this spread bet, you might find that your trade was closed out at a price of 192.96 – 196.23. This would have reduced your loss from the previous value. Your starting price was 203.32, and the trade closed at 192.96, a point difference of 10.36. At £20 per point, you would have lost £207.20.
Join the discussion