Spread Betting Ashmore Group
Ashmore Group PLC [ASHM] is a financial institution specializing in emerging markets. It was first established under a parent company in 1992, and became independent in 1999. It is headquartered in London. It is generally accepted that emerging markets will continue to emerge, and in the long run funds that invest in them should do well. However, in the short run the funds that Ashmore manage for investors have been caught up in the world economic situation, and have not been very profitable.
The interesting thing is that shares in Ashmore have continued to grow, so investing in the company itself has proved better than buying into their funds. Share prices tend to be a reflection of the public’s view of a company’s success, and at the moment it is still positive towards Ashmore, with the inflow into its funds more than the amount being redeemed. Ashmore Group has recently become a major shareholder in the US investment management company Emerging Markets Management, which was another specialist in shares in emerging markets.
The downturn in the managed funds values appears to be only temporary, and public confidence may continue to support the share prices. Ashmore Group is well-liked, with a number of awards and high rankings from S&P and others. It is still one of the companies chosen by corporate pension funds, high net worth individuals, and central banks to manage their funds. It has a highly experienced management team that is respected in the industry, and this continues to attract large institutional investors who are interested in long-term performance, and in diversifying their financial portfolios into the emerging markets. As with all investing, perception is reality and the fact that its clients are content to ride out any downside to their investments shows that Ashmore has a strong position in the market.
Ashmore Group Rolling Daily
The Ashmore Group is a financial management business with funds in the emerging markets. Although the emerging markets have been set back a little by the global economic condition, the Group has been doing well for its shareholders, and the current quote for a daily spread bet is 384.64 – 386.56, up from around 300 a few months ago, and from the 100s a few years ago. If you think it is going to continue to increase in value, you might place a long spread bet for £2.50 per point at the buying price of 386.56.
Assuming you are correct, the price may go up to 436.22 – 438.14 before you decide it’s time to take your winnings. Your bet started at 386.56, and it closed at 436.22, which means you won 49.66 points. Multiplying by your stake, you have won £124.15.
Of course, sometimes the market goes a different way to what you think, so say that the price went down to 346.50 – 346.68, and that made you decide to close the bet before you lost any more. The point difference this time is 386.56-346.50, which is 40.06. With a stake of £2.50 per point, your losses amount to £100.15.
Whenever you open a spread trade, you have the option to also open a stop loss order, which will close your trade for you if the price goes against you to a certain level. When the stoploss order is triggered it becomes a simple “close the trade” order which happens at the price then current, so there is no guarantee that the bet will close at exactly the stated level. Say you used such an order, which meant that the bet was closed for you when it reached 356.83 – 358.75.
In this case the spreadbet was opened at 386.56, and fell to 356.83, a loss of 29.73 points. For your stake, that means a loss of £75.33.
Ashmore Group Futures Based Spread Bet
The Ashmore Group specializes in investment funds principally in emerging markets. The company has been doing well, and attracting more investment even though its managed funds have suffered recent setbacks. The current spread betting quote for a futures style bet three quarters away is 386.45 – 391.11. If you think that the performance of its funds is going to be reflected back on the stock price, you might want to take a short or sell bet for £3 per point, which would be entered at 386.45.
Supposing you are right, the stock quote may go down to 315.61 – 319.73, and you could close your bet and work out your profit. The bet closes at the buying price of 319.73, so the number of points you have gained is 386.45-319.73, a total of 66.72 points. With a bet of £3 per point, this amounts to a profit of £200.16.
If this is not your first day spread betting, you will know that frequently your bets will not go in the right direction. Say the price for this one goes up to 431.27 – 435.10, and you decide to close your bet and cut your losses. The bet closes at 435.10, which means the number of points lost from your starting price is 48.65. For your stake, this amounts to £145.95.
You could have chosen to set a stoploss order to close the bet for you, if the price went up against your bet. Perhaps you asked for this at a level of 30 points from the opening price, and your bet was closed at a price of 417.21 – 421.87. In this case your starting price was still 386.45, but your bet was closed at 421.87, giving you a loss of 35.42 points. This keeps your losses down to £106.26.