Simply click 'SWITCH' and enter the market symbol you're looking for...
Spread Betting Glossary
Spread Betting Spread betting is a tax-free method of speculating on the future movements of many financial instruments, such as stock prices, commodity prices and indices such as the FTSE 100 or Nasdaq. Unlike traditional share ownership, you can speculate and profit from movements both upwards and downwards in prices, while never actually holding the shares. Read more...
Stop-Losses Due to the volatility of some markets, a stop-loss is recommended for many types of bets. This is a level at which the bet will be automatically closed if the market moves against you. Often these levels may be subject to some 'slippage' if the market moves particularly quickly, and it is not possible for the spread-betting company to close the position in the market. Read more...
Trailing Stops A trailing stop is a moving stop that follows the price of an instrument, ensuring that any sudden movement does not wipe out profits already made - effectively locking in profits. Read more...
Leverage Leverage is a term used for trading on 'margin' or borrowed funds. Read more...
Hedging A common use for spread betting is to hedge (offset risk) in an existing portfolio. Read more...
Trading Systems For Profitable Spread Betting
By Andy Richardson
Humans are hard wired in life to succeed and by definition we measure success by successful achievements. When people try their hand at trading they try and use the same measurements and inevitably become stuck in a loop of jumping from system to system tweaking this and that and eventually giving up.
So many newbies think they understand the basics but actually have no clue. You can lose 7 out of every 10 trades and still make money but 90% of traders can't understand this and it isn't an odd coincidence that 90% fail. Remember that not all trading systems are created equal. Now there are a few basics a person needs to become successful -:
A set of setups combined with rules that over time guarantees a particular outcome with a win ratio that enables the trader to make money like a casino.
Money management
Soldier like mental control. Trading is 70% mental and 30% method. A trader needs to understand that not every move is a setup and not every setup is good and waiting for the right setups with no exceptions can be very rewarding. A trader also needs to trade only when he has a plan, by this I mean has the setup filled all the requirements, does the trade qualify a good risk reward ratio, stop and targets must be known.
Now as simple as these concepts are the typical trader fails to master them and from observing so many novices I have identified some common traits. Firstly new traders seem to hang onto the fact that their system is the problem and they also seem to think they need to win more than they lose. This mindset is what makes 90% fail. Now you are probably wondering what system I use and whether I'm willing to share it.
Yes, I am but the fact is there are a hundred ways to trade the market and what works for me might not for you. Let's talk about trading systems, indicator...etc - for a system to be good it needs to meet the following requirements -:
Repeatable setups
Low risk, high reward
No indicators , they are rubbish and cannot compare to price action. Indicator traders rely on them too much and as a result they ignore what price is telling them.
That's it!!! You don't need anything else and when testing systems you must have one that can give you this. Now back to the 7/10 trades, let's take a real close look and give the 20 second explanation. If your system gives you favourable risk/rewards ratios then all you need is 3 winners out of every 10 trades to succeed. One of my methods is simply the Andrews Pitchfork and price action. Price always has a frequency and Andrews Pitchfork catches these beautifully. I typically have setups that allow me risking no more than 20 pips with rewards of 100+ and i maintain a win/loss ratio of around 50-60%.
Andy Richardson a UK based spread trader, who like his inspiration, the late Jesse Livermore is a student of the markets and plays a lone hand. Resident financial spread betting expert Andy publishes a question and answer spread betting guide where one can find objective spread trading information.
Capital Spreads offer a wide variety of bets on Financial Products which include: Indices, Shares (UK & US), Currencies (FX), Commodities (Metals, Oils & Coffee etc), Interest Rates and Bonds. You can bet on the Future, Cash (which expire at the end of each day) and Rolling Daily products.
Capital Spreads really strive to keep their spreads permanently tight to give you more room for profit - Extremely competitive and most are found to be better value than most of their competitors thus giving you more opportunity to win.
Whether you're a full time professional or just starting out, it’s all about making the most of the market.
City Index, a market leading provider of spread betting and contracts for difference (CFD) trading, will help you do that with a clear, simple service designed to help you make your investment decisions.
IG Index is Britain's leading financial spread betting firm, offering prices in a huge range of indices, currencies, commodities and options, as well as thousands of individual shares. Financial spread betting has grown exponentially in the last decade because it offers traders and investors a unique combination of flexibility, speed of execution and tax-free profits.
Cantor Index is a leading financial spread betting company. Cantor Index offers spread bets on a wide range of markets from shares and indices to bonds and commodities. It has unrivalled customer services and a state of the art online betting platform, as well as a free charting package and huge resource center.
