Spread Bet on Serco Group | Trade Serco Group Shares
Serco Group may be “the biggest company you never heard of” according to the Guardian. It is a service company, and provides outsourcing services to governments and private clients in more than 30 countries. It operates in many sectors, including health, education, transportation, and defence. It is head-quartered in Hook, in Hampshire.
To get an idea of the size of Serco, it has more than 100,000 employees delivering services to its clients. Even its forward orders amount to more than £16 billion. It was founded in 1929 as the English division of the Radio Corporation of America, and worked with cinemas. It changed its name to Serco in 1987, and was listed on the London Stock Exchange the following year.
The range of work is extensive. For instance, it operates railways, such as three transcontinental services in Australia as well as London’s Docklands Light Railway and the Woolwich ferry. It operates the speed camera systems in the UK, and provides support to the National Traffic Control Centre with motorway signage, emergency roadside phones, and traffic monitoring. It runs the computer systems for UK law enforcement agencies. It manages education authorities for local government. It runs prisons, and provides electronic tagging devices for offenders. It provides air traffic control services to five countries. It is involved in defence and in nuclear power. It provides major services to healthcare, to driver licensing, to leisure centres, for IT support, and to many other areas of life.
Serco Group Rolling Daily
Serco is a services company, providing staff to many municipal and private companies. The current quotation for a rolling daily spread bet is 528.5 – 529.5. If you think that the price of the shares will go up, then you could take out a long bet for £8.50 per point.
Consider first the case when your spreadbet is a winner. Perhaps the price goes up to 573.6 – 574.6, and you decide to close your spread trade and collect your profits. Your long bet was placed at a price of 529.5, and will close at the selling price of 573.6. If you take 529.5 away from 573.6, you will find that you made 44.1 points. With a bet of £8.50 per point, that means you won £374.85.
You must also consider that your spread bet may have lost. It does not matter how carefully you selected your bet, or how tested your strategy is, even the best of traders have losing bets. Suppose the price fell to 496.7 – 497.7, and you closed the trade and accepted your loss. The bet was placed at 529.5, and it closed at 496.7. That means you lost 32.8 points. For your chosen stake, that amounts to a loss of £278.80.
Many traders and spread betters use a stop loss order to keep their losses in control. The stoploss order requires your spread betting provider to close your losing bet when it reaches a price that you specify, and although it does not guarantee you receive that price (for which you need a guaranteed stop loss or GSL) usually the losing bet will close near the price. Say the stop loss order closed your bet at 515.3 – 516.3. In this case you would have lost 529.5 minus 515.3 points, which is 14.2 points, for a total loss of £120.70.
Serco Group Futures Bet
The service company Serco has been performing steadily, although you should use technical analysis to determine as well as you can which direction you should bet at any particular time. Say you believe that the price will go down, the current quote for the far quarter futures style bet is 529.2 – 535.6, and you could place a short bet for £7.50 per point at the selling price of 529.2.
Perhaps your bet works out well, and the quote drops to 493.2 – 498.7. If you close your spreadbet at this point, you can work out your winnings like this. The starting point for your bet was 529.2. Your bet closed when the buying price was 498.7. The difference between these two prices is 30.5 points. Because you staked £7.50 per point, that means you won £228.75.
On the other hand, your spread bet may not have won, and you may have to close the trade for a loss simply to prevent further losses. Say the price went up to 553.8 – 559.6, and you ended your bet. Once again your bet started at 529.2, but this time it closed at 559.6, a difference of 30.4 points. With your chosen stake of £7.50 per point, you would have lost £228.
Another way for a losing bet to close is for you to place a stop loss order when you take out the bet. If you do this, then the bet is closed automatically by your spread betting provider without your intervention, and you do not need to keep an eye on the market prices. If you had done this, you might find that your trade was finished when the price had only risen to 542.0 – 548.0. The spread bet closed at 548.0, and taking away your starting price of 529.2 you find you have lost 18.8 points. Your total loss at £7.50 per point would then be £141.
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