Whether you are looking for a broker, developing trading strategies, or self educating, understanding the terminology (just like in lots of other disciplines) is the first step. Here is some of the common terminology that is used in the contract for difference world: Blue chip stock: A company that is regarded as traditional and not […]
Financial spread betting lets you gain exposure to the performance of key markets, without having to put up the full value of the transaction as you’re trading on margin. So you can profit from market moves while only putting forward a margin deposit as collateral, this can be as low as 10% of the contract […]
Liquidity is a standard issue for basically all futures exchanges except for the giant that is OneChicargo – the largest futures exchange in the world. Futures markets have become famous for slipped trade executions (slippage) and bad execution. This is because of the lack of volume associated with the trades. As futures are exchange traded […]
Trading CFDs without a proper risk management strategy can expose you to unnecessary risk. For example, if you allocate a large portion of your trading capital to a trade without a proper risk management strategy, you put all of your trading capital at risk meaning that if you sustain a loss you will no longer […]
The CFD trading sector was initially started back in the early 1980s for large banking institutions as a way for them to hedge share positions. Approximately 1999 CFDs were opened up to the retail environment and quickly gained high praise and buzz as it spread throughout the United Kingdom and Europe, and now continues to […]
Technological advances and the increasing usage of the internet enabled the people to opt for the new online trading platforms. Not surprisingly the financial spread betting companies started offering online services to their customers. Convenience, flexibility and cost-effective trading worked for all concerned. Convenience and flexibility attracted more investors and low cost trading allowed the […]
One form of trading that has become quite popular is financial spread betting. That is so because this form of trading lends itself well to those who wish to play the market without putting up big capital as is required when they trade stocks in cash. As opposed to the cash trading where you own […]
Financial Spread Betting is earning its peak in the UK in recent years. Financial instruments contain mostly of the UK’s kosher market. Like any other form of betting activity, it bears high risks of losing and also winning, so it is still needed to be able to rely on trends and other critical information before […]
The reason that a lot of people have done poorly is because they only ever have what is called a ‘long’ position. That is they buy something and only benefit when the price goes up. With financial spread betting you can actually go on the opposite side of the trade… you can trade short. This […]
This type of trading is preferred over share trading, since it requires a lower amount of capital. Besides, an investor can reap high profits with a low investment amount. The investor can trade on rising prices by going long, and trade on falling prices by choosing to go short. The change in price of these […]
Capital Spreads Review 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. The spreads and […]
However, a week prior to this release an explosion on BP’s Deepwater Horizon drilling rig had started to send crude oil gushing into the Gulf of Mexico. BP’s media response to the oil spill was as ineffective as were its initial attempts to stem the flow of oil. As the days turned into weeks and […]
There is no need to order expensive commodity trading courses or attend expensive seminars – I’ve learnt everything I know from working in the city where it’s my job to make money trading commodities and currencies. I believe with the right tools and knowledge almost ANYONE can make money in the commodity markets. There are […]
A lot of people don’t know what FTSE spread betting is. It is a way of trading the financial markets which is a bit different from owning the actual shares. You make a bet on which direction you think that the market will go either up or down (you go either long or short). There […]
The most common idea behind dividend stripping is that the share price drops on the day the dividend is declared by an amount which is similar to but not exactly the same as the dividend. With a strong stock, it’s common for the share price to not reduce by the full amount of the dividend. […]
It is true that the spread trading company is your counterparty. Broadly speaking, spreadbetting firms make a price to the clients so, in the first instance, it is true that you’re betting against the spread betting firm. What they choose to do with that risk depends on their view perhaps of just that particular product […]
Forget Aim shares – the buy/sell spread is too big usually and will gobble up any profits…perhaps better stick to FTSE 100 companies. Get a cheap online broker (should be less than £12.50 a trade) or use IG Index or Capital Spreads spread betting. Avoid trading/holding when it’s company result’s day, as it is a […]
Introduction In the present day economy, depositing all your money in a bank is no longer considered to be a good financial plan. With inflated costs of living and the low interest rates of banks, bank deposits aren’t a great way of planning for the future, any more. This is why an increasing number of […]
The biggest tip of all to remember is ALWAYS BE DISCIPLINED. See the section on trading discipline for more about this subject. Always cut your losses quickly, remember no one gets every trade right. When you start out spread betting, always use a trading plan. A trading plan is a set of criteria that you […]
Controlled Risk You can choose to open your position as a Controlled Risk bet. This means that you specify a level at which you want your bet to be closed, should the market move against you. The spread better should then guarantee your position will be closed at this level, even if the price gaps suddenly. Other […]
Spread betting is the flexible and tax-efficient way to back your judgement in the financial markets. You can go long or short of a huge range of markets to profit from rising or falling prices. You simply ‘buy’ if you think that the price is set to rise, or ‘sell’ if you think it will drop. […]
1. Easy to pick up Financial spread betting is based upon a simple concept of betting a stake per point. This system works for all of its related markets. It may seem tricky at first but after you have run through a few examples you will see how easy it is to pick up. 2. […]
Establishing the right mindset and purpose when trading Index CFDs As with any project or new field of study, it is critical to have clearly mapped out goals before you jump in. Index CFDs allows incredible levels of leverage and most Market Maker CFDs brokers like CMC Markets allow 100 times leverage or 1% margin. […]
It is very well to have yourself a profit target and a stop loss set at the maximum you are willing to lose but what happens when you are triggered into a trade and the profit target is not quite reached? Do you allow the trade to simply reverse and go against you the amount […]
To start with the procedure of making money through contract for difference trading, you should have a basic idea about what you want to do in order o achieve your profit goal. Once again, it is important to mention here that good market knowledge is essential. Learn more about the market trends, performance of various […]
The Financial Spread Betting Handbook by Malcolm Pryor (2007) The theme of this book is to look at how the people who succeed at spread betting do things differently from those that lose. The author uses the analogy of climbing a mountain to explain how if you are serious about trying to make money in […]
First, spread betting allows you liquidity while share trading does not. Opening a trade using spread betting is easy and you can close out your position quite easily as well, but stock market trading is more rigid and you cannot close your position or bet before the time you have chosen expires. Another difference is […]
Is Spread Betting just a Bet that the market will go up or down? I am surprised at people’s ignorance to spread betting. Yes, it is essentially a ‘bet’ that the price will go up, down or sideways, essentially like any form of investment. Of course you shouldn’t over leverage yourself – use leverage sensibly […]
1 -The constant search for someone to give them a trading methodology or trading signals. Currently this seems to take the form of finding the current hot chat room that has the answers. In the past it was a market letter or advisory service, or someone promising the secret to trading by selling an expensive […]
It is any day better than being in net loss. However, with few rules, one can not just ensure that they do not loose their money in the process of spread betting, they earn profits as well. One thing should be always kept in mind by new investors in the financial market i.e. when you […]
