The Booker Group has changed a lot since it sponsored the Booker Prize for Fiction (now sponsored by Man Group). These changes mean it has had a turbulent history, which can also translate into volatility in the share price, something which is often desired when spread betting. However, it is important to note that being involved in different industries means that, despite the length of operation, there is not the same history to draw on.
The Booker Group is now fully committed to being the UK’s largest food wholesaler, supplying independent stores, grocery chains, pubs, and restaurants. It was originally founded in 1835, and started by shipping wholesale food, at one point owning a fleet of ships. In fact, it was involved in exploiting sugar workers in British Guiana, in which it controlled up to 75% of the market. But in the mid-20th century it became a benevolent company under the chairmanship of Jock Campbell, and started looking after sugar workers, providing major benefits. The Author division was set up, establishing the Booker Prize in 1968, and it held the rights to Agatha Christie’s books until they were sold in 1998.
In 1986 it moved into shows and movies, including the animated film “The Little Engine That Could”. Being bought out by Iceland Supermarkets in 2000, then in turn being bought by Baugur in 2005 changed the operation again, and in 2007 Booker took over Blueheath Groceries to become the current setup, concentrating solely on wholesale food.
This is reflected in the price chart. Trading as high as 170 in 2005, the shares plummeted to 7 in 2007, and since then have shown fairly steady growth to the current level of about 100. Now it represents a reasonably volatile stock, and the activity of the MACD can translate into decent up and down trends for the trader.
Booker Group Rolling Daily: How to Spread Bet on Booker Group Shares?
Booker Group is a food wholesaler, which means it has a steady market which it has been growing for a number of years. Even so, the price is subject to volatility, as you can see from looking at the daily chart. The current rolling daily price quoted is sell at 99.15 and buy at 99.65. Suppose that you believe the share value will be going up, you can place a buy bet at 99.65, staking perhaps £12 per point.
For the sake of example, suppose the price goes up to 131.52 – 132.02, and you decide to close the bet and collect your winnings. The opening price for your bet was 99.65, and it closed at 131.52, the selling price. That means you gained 131.52 minus 99.65 points, which is 31.87 points. With a stake of £12 per point, you would have won £382.44.
That said, prices can go down as well as up, and you might have found the price sinking after you placed your spreadbet. If this was the case, you could choose to close your bet and cut your losses when the quote went down to 76.36 – 76.86. Your bet was originally placed at 99.65, and this time you closed the bet when the selling price was 76.36. The difference is 23.29 points, and this is the amount you lost. Multiplying by £12, the total you lost is £279.48.
It can be a good idea to use a stop loss order to protect you from excessive losses. Even if you are not watching how well your shares are doing, your spread betting provider will keep an eye on the market and close your bet if it goes too far against you. With a stop loss order, this losing trade might have been closed when the price went down to 83.55 – 84.05. The closing price would be 83.55 so taking this away from the opening price of 99.65 you would have lost 16.10 points. That amounts to a loss of £193.20.
Booker Group Quarterly Futures Style Bet
For a longer-term view of the market, you might place a spread bet on a futures style quote. The current far quarter quote is 99.31 – 100.51 for the Booker Group. If you think the price is going down, place a short bet at £10 per point at the selling price of 99.31.
If you are correct, the price may go down to 76.66 – 77.76 and you can close the bet and collect your profit. This is how you would work it out.
- Your bet was placed at 99.31
- You closed your bet for a win at 77.76
- Therefore you won 99.31-77.76 points
- That is 21.55 points
- Your stake was £10 per point
- Therefore you won £215.50
As prices can go up as well as down, you may have to close your bet for a loss. Suppose the price went up to 115.63 – 116.75, and you decided to end the trade before the price went any higher. Now the calculation goes like this.
- Your bet was placed at 99.31
- You closed your bet for a loss at 116.75
- Therefore you lost 116.75 minus 99.31 points
- That is 17.44 points
- Your stake was £10 per point
- Therefore you lost £174.40
Many spread betters use a stop loss order to help them stay out of trouble. The stop loss order requires your spread betting provider to close your trade if the price reaches a losing level that you specify. Although the price is not guaranteed, usually the trade will close near the value you set. In this case a stop loss order might have closed your bet when the quote was 110.61 – 111.85.
- Your bet was placed at 99.31
- You closed your bet for a loss at 111.85
- Therefore you lost 111.85 minus 99.31 points
- That is 12.54 points
- Your stake was £10 per point
- Therefore you lost £125.40