Playtech is a gaming software company, concentrating on the online market. In this fast-moving environment, you can expect the price to be volatile and when spread betting you need to keep an eye on the industry to see if there are any developments from Playtech or its rivals which may affect the price.
Playtex was originally founded in 1999, and is headquartered in the Isle of Man. It came to the London Stock Exchange in 2006, and the initial public offering valued it at over half £1 billion. Almost immediately, the stock suffered a fall of 40% when the government passed the Unlawful Internet Gambling Enforcement Act of 2006. Even so, you can see that the stock has an underlying upward movement on the daily price chart above.
When thinking about online gaming, the conception is often that it is run by a group of youngsters operating out of a small location. Playtech however is a relatively large company, and it employs about 1000 people worldwide, with the majority of them in Estonia. There are offices also in Israel, Bulgaria, and the Ukraine, as well as in the UK.
Recent price performance has been range trading, as you can see on the right-hand side of the chart above, and you need a particular trading strategy to make much money from such movement. The moves on the left were far more likely to have made you a profit, given that they are defined trends and fairly well reflected by the Moving Average Convergence Divergence (MACD) below.
This shows the importance of checking your trading strategy against recent information, as the activity of a price can vary over time, and something that worked five years ago on a particular stock may not be useful today. Remember that on average about half the time prices are not trending either up or down.
Playtech Rolling Rolling Daily: How to Spread Bet on Playtech Rolling Shares?
If you choose to spread bet on Playtech, remember that it is in a volatile industry, and you can expect the unexpected. Be careful to control your position size to avoid undue losses. The current price for a rolling daily bet is 410.87 – 412.93. If you want to bet on the price going up, you could place a bet for £15 per point at the buying price of 412.93.
Suppose you are right, and the price goes up to 432.17 – 434.23. If you close your bet at this time, the closing price will be the selling price of 432.17. This means that you have gained the difference in points between 432.17 and 412.93, which works out to 19.24 points. For your wager of £15 per point, this multiplies up to a profit of £288.60.
You may also need on occasion to work out how much you have lost. You cannot expect all of your bets to be winners, and you may find a fair proportion of them are losers. You profit overall by keeping your losses small. Suppose the price drops to 398.09 – 400.15 and you decide to close your spread trade. The opening price was 412.93. You closed your bet when it reached 398.09. Taking a 398.09 away from 412.93, you have lost a total of 14.84 points. Multiplying this by your bet of £15 per point, this amounts to a loss of £222.60.
Many spread traders decide to use a stop loss order on their trades, simply because it saves them having to watch the market all day long. With a stop loss order, it is likely that your losing trade will be closed quickly, saving you some loss. Perhaps in this case your bet would be closed at 404.48 – 406.54. Taking the closing price of 404.48 away from the opening price of 412.93, the bet would have cost you 8.45 points. For your chosen size of bet, this amounts to £126.75.
Playtech Futures Type Bet
For an example of a futures style bet, suppose you figure that the price will drop over the next few months, and decide to place a sell bet. The current price for a far quarter bet is 412.38 – 417.35. Say you stake £10 per point at the selling price of 412.38.
Considering first a good outcome, perhaps the price will drop to 380.43 – 385.40, and you will close the bet and collect your winnings. Your bet was placed at the selling price of 412.38. Your bet closed at the buying price of 385.40. That means that you have gained 412.38 minus 385.40 points, which works out to 26.98 points. As you staked £10 per point, your profit is £269.80.
Secondly, if the price goes up you will be faced with having to close it at some stage in order to prevent further loss. Say you decide to do this when the quote is 425.16 – 430.13. This time the closing price is 430.13, so taking away the opening price of 412.38 you find you have lost 17.75 points. Again your stake is £10 per point, so your loss is £177.50.
If you don’t have time to watch the markets, then a stop loss order can be valuable, taking you out of the trade automatically no matter what you’re doing if the price drops to your set level. A stop loss order in this case might have closed the trade when the quote was 418.77 – 423.74. The starting price was 412.38, as before. The trade was closed for you at a price of 423.74. That means you would have lost 423.74 minus 412.38 points. This works out to 11.36 points. Taking your bet size of £10 per point, your loss in this case would have been kept down to £113.60.