AZ Electronic Materials is a young company, but can trace its history back to the 50s. The weekly price chart below shows good activity, which is always good for spread betting, and the company is in a high-tech field which should mean good price action.
The company started in the 1950s as a division of Hoechst. It was bought by a Swiss business in 1997, and in 2004 it was bought by the Carlyle Group, an American asset management company. Vestar Capital Partners, another American company, joined in investing in 2007. It was only listed on the London Stock Exchange in 2010.
The name of the company apparently comes from the organic compound diazo, and not from association with the State of Arizona (AZ), or the sense of comprehensive (A to Z). It specializes in materials that are used for flat-panel displays and integrated circuits, and develops new materials for its customers. This means it has a substantial investment in R&D and is on the cutting edge of the engineering market.
Such a company thrives by adaptation to the latest technologies. With tablets and personal computing becoming more popular, AZ Electronic Materials is heavily invested in photolithographic materials such as are used in flat-panel displays. These technologies also help in advances in mobile communications and for electronics such as televisions. The company also makes use of specialty coatings, polymers, and other products as necessary for the latest gadgets.
The chart shows candlesticks which are of medium length, meaning that there is a fair amount of difference between the opening and closing prices for that time period. As it is a weekly chart, this suggests that the price will change substantially over several days, and this is an indication that the company may perform well for rolling daily bets. While the price is active, it does not appear to have too many surprises such as gaps, and so should be a practical stock on which to bet.
AZ Electronic Materials Rolling Daily: How to Spread Bet on AZ Electronic Materials Shares?
Being in a high-tech field, AZ Electronic Materials is particularly subject to the ups and downs of trader sentiment. You should use technical analysis to carefully figure out the likely direction of the stock price. Say you believe that the price is going down, you could place a sell bet on this stock, for which the current quote is 346.43 – 348.17. You choose to risk £15 per point.
As an example, assume that you are correct and that the price falls to 314.78 – 316.52. Your spreadbet opened at the selling price of 346.43 and it closed at the buying price of 316.52. This means you have gained 29.91 points. At £15 per point, this works out to £448.65 profit.
If the bet does not work out, and the price goes up after you place it, then you are faced with the decision to close the losing trade before you lose any more. This is difficult, but essential if you are going to make a success of spread betting. Say the price went up to 365.42 – 367.16. Your short trade closes at 367.16, and taking away the starting price of 346.43 you find you have lost 20.73 points. Multiplying by £15, this gives you a total loss of £310.95.
It can help to set a stop loss order when you take out the initial bet. This tells your spread betting provider to close out your losing bet when it reaches an amount that you instruct, and it saves you having to follow the market or make a decision on the spot. With a stop loss order, this bet might have closed when the quote was 355.93 – 357.67. Your bet was opened at a price of 346.43. It closed at the price of 357.67. That means you lost 357.67 minus 346.43 points, which is 11.24 points. With a £15 stake, that amounts to a loss of £168.53.
AZ Electronic Materials Quarterly Futures Style Bet
The current price for the far quarter futures bet on AZ Electronic Materials is 347.74 – 351.94. You would use a futures style bet if you believe that you may need to hold the bet for a few weeks or months before realizing the profit that you expect. In this case, you might decide to place a long bet for £8 per point. The long bet goes on at the buying price of 351.94.
Suppose the price goes up to 395.22 – 399.42, and you decide that is near the best that you will get and close the bet. As this is a long bet, it closes at the lower or selling price of 395.22. It is easy to work out how much you have won.
- You opened the bet at 351.94
- You closed the bet at 395.22
- That means you have gained 395.22 minus 351.94 points
- Which is 43.28 points
- Your stake was £8 per point
- Multiplying 43.28 times £8 you find you have won £346.20
Things do not always work out as planned, and sometimes you will have losses. You need to accept your loss and move on to the next bet. Say the price went down to 328.75 – 332.95. The closing price this time is 328.75, so this is the calculation: –
- You opened the bet at 351.94
- You closed the bet at 328.75
- That means you have lost 351.94 minus 328.75 points
- Which is 23.19 points
- Your stake was £8 per point
- Multiplying 23.19 times £8 gives you a loss of £185.52
Many spread betters use the stop loss order to close their losing positions, as this works whether or not you are watching the market. The stop loss order might have closed your bet at 338.25 – 342.45.
- You opened the bet at 351.94
- The bet closed at 338.25
- That means you have lost 351.94 minus 338.25 points
- Which is 13.69 points
- Your stake was £8 per point
- Multiplying 13.69 times £8 gives you a loss of £109.52