If your prediction is correct
The BoE drops interest rates, and as soon as the news is announced, the FTSE 100 climbs. You decide to close your position when it reaches 7150, with a buy price of 7150.5 and a sell price of 7149.5.
To close a spread bet position, you reverse your trade – so you sell your £10 stake at a price of 7149.5.
7149.5 – 7114.5 = 35, meaning that the market has moved 35 points in your favour. To calculate your profit, you multiply this figure by the amount you’ve bet per point, giving you a profit of £350.
With spread betting, you won’t have to pay any tax on your profits, or commission to open the position. You will have to pay funding charges if you keep your position open overnight, however.
Calculating profit from your indices position