Opening a Long Position:-If you get a quote of 640-645p for shares in company X. You then place a buy trade after your research, the finding will be thus

Using a rate of £10 per point, you bought the shares at 645, and then sold them back at 665, the spread is 20 points.

20 x £10 = £200 profit

Understanding Short Positions:-“Shorting” the market is terms most people use too often but don’t know how it works.

Going short on a share is where you agree to sell shares without actually buying them from the market. The expectation is that the share will soon fall in value below the price you have agreed to sell the shares in the first place.

Shorting the market is not a strategy that most private investors normally use, but it is a major option available to betters in the market. By ordering a “SELL” bet on a stock, you can make a lot more money but you could also face more risk than if you go long

Example - Opening a short position

Just like the previous example the spread betting company will quote you a spread of 640-645 for shares in company X. The sell price here will be 640p, the buy is 645p. You then place a sell trade based on your research and findings that the share price will fall, it might happen like this

Still using a rate of £10 per point, you sold the shares at 640, and then bought them back at 610, the spread is 30 points.

30 x £10 = £300

You will make a profit of £300. Isn’t that great!!!