Barclays is a British company specializing in classic and investment banking. Today, Barclays is one of the UK and world’s largest conglomerates. The company has subsidiaries in Europe, the Unites States and Asia. The conglomerate operates through its subsidiary called as Barclays Bank PLC. Its investment subsidiary is called Barclays Capital.
Barclays is listed on the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE) under the ticker symbol BARC and BCS, respectively. Trading hours are 07:00 to 15:30 GMT.
Although the history of the banks dates back to 1690, the date of its foundation is considered as 1896. Barclays was founded by means of a merger of several banks from London and outside. The largest of them were Gurney’s Bank of Norwich and Backhouse’sBank of Darlington. Besides, throughout its existence, the company has conducted a range of other mergers and acquisitions. If to speak about stock of the company, about 67% belong to different institutional investors. It employs about 150,000.
Today, the company’s stock is affected by a great number of different factors. From the point of view of a long-term outlook, the company’s stock is mainly impacted by its revenue and expected returns. This is why, to analyze comprehensively Barclays’ stock, a trader has to follow the changes in financial results.
The financial results are not a secret, and you can find them on Barclays’ investor website where different data on the company, plans and expected revenue are published.
Also, an investor needs to learn an impact of general interest rates on the stock exchange market. A trader has to follow the Central Bank base rate, deposit, loan and inflation rate. If the above said rates rise, Barclays’ stock quotes fall, because a return on investment increases.
You can follow the above said and other events affecting Barclays’ stock quotes on the financial websites.
A trader has to keep in mind that the stock exchange is a market. Therefore, a balance of supply and demand plays here the key role as in any other market relations. If Barclays’ stock is in high demand, the quotes rise. If the market is oversupplied, the quotes fall.
Banking institutions like Barclays significantly depend on their reputation being the basis of the company’s operation. Any negative news release in a reputable magazine or newspaper causes Barclays to lose revenue. This can be expected in case of fraud by the company’s staff.
Such an incident happened in summer 2012. A high-profile scandal broke after it was known about deliberate manipulation of LIBOR (the interbank rate) to increase the company’s revenue by the company’s staff.
As a result, the company got a $452 million fine paid to the U.S. and UK market regulators. Such incidents have a negative impact on Barclays’ stock quotes. After the incident, the chief executive officer, the chairman of the board and chief operations officer resigned.
Gaining new markets is a positive factor making Barclays stock rise. It’s important that each subsidiary of the company has stable revenue. Tounderstand whether the company’s revenue will rise or fall, a trader has to asses total earnings made the company and its subsidiaries.
General state of the economy also has an impact on Barclays. As the company depends on its subsidiaries, a trader needs to have in mind the economies where Barclays’ subsidiaries conduct their business. The Unites States and UK’s economy is of great importance for the company.
How to Make a Profit on Barclays Stock
Before you buy Barclays’ stock, you should think of a return. Last several years, Barclays’ stock quotes stayed almost on the same level. Its shares may yield up to 10% to 14% per annum. I would recommend that you pay attention to options because binary options on Barclays’ stock yield a 70% profit in a shorter period, say, 10 minutes.
To earn on an option, you just need to forecast a price and expiration of the option. If during this period your forecast works out, you’ll make a profit.
There are many binary option brokers, but I prefer to deal with the best binary option broker, AnyOption. This broker is licensed by the EU financial institutions.
I opened up the broker’s website and selected Barclays’ stock as an underlying asset. Then I set expiration to 5:30 p.m., typed the investment amount and clicked on the CALL button because I expected the price to rise:
As you see from the chart, it was 5:08 p.m. at that moment; the option had to expire at 5:30 p.m., which meant that I invested for a period of 22 minutes.
If Barclays’ stock rose even by a pip in 22 minutes, in line with my forecast by the moment of expiration, I would make a 75% profit.
Time went by, and I got the following result on the broker’s website:
The stock quotes rose up, and I made $45 in 14 minutes!
Don’t miss a chance of earning on stock at AnyOption that, by the way, has a wide choice of assets including shares, commodities, currencies, and indices.