Jump to content

Best approach to capitalise on a predicted share price jump through spread betting

Recommended Posts

I do have a number of Tesla shares and became very familiar with the way they behave. I trade them on the US market and pre-market trading start at 9am UK time and the US markets open at 2:30 pm and after hours continue until 1am UK time. 

When the pre-market open at 9am there is almost without exception a jump of around 30000 pips (around $30 on a share price of around £1100) and again when the markets open at 2:30 the same thing happens (the difference is that in this situation it is trading that continue after the pre-market trading, while in the first case it is a market opening). Sometimes it is a downward trend (but the same level of change). 

I worked out that should I be able to play this right I could be able to make around £1000 with a £4000 margin. I want to limit any potential losses by having a very low stop level, should things not work out as anticipated. 

Ideally I want to also use trailing stops but the lack of support for MT5 from IG, that is impossible and a severe limitations.

Anyone who can give me advice on how to go about achieving this because it must surely be possible to do it effectively? Where else will you get such a jump in price you can predict with almost 99% certainty will happen at a very specific time. I tried using limited orders with stop levels but failed to capitalise on it. I added some images demonstrating these jumps. In some instance these jumps contains gaps, which are not presented as such on the IG platform. The first 2 images are at the 9 am start and the last one at the 2:30 opening of the markets.


  • Like 1
Link to comment

Tried a certain strategy on the demo account this morning but was using a much higher stop level as what I was comfortable with and I also used a limit of 1000 points. A trailing stop would have been much better with a potential profit in the vicinity of £2000. Using a limit posed the risk that a potential maximum level of only 800 points in the stock level would have resulted in a loss of £25 instead of a £800 profit while it would not have been the case with a trailing stop.1557631304_Screenshot2021-12-03100650.thumb.jpg.6c5311f7e9510371949ea99e051c493b.jpg

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...