Understanding Spread Betting

Spread Betting Education

Understanding the amount of movement in a share price or index.


September 03, 2008

Spread Betting Tips: Average Directional Index

Average Directional Index can help you evaluate trends
One of the tools you can use to help you assess trends in a variety of markets is the Average Directional Index (ADX).

The ADX can be used with a variety of markets, including currency, stock, bond and others. It is an indicator that can help you establish how strong a current trend looks.

ADX

The ADX is not something to use on its own, but it can be a valuable tool as you make spread betting decisions based on market trends. The ADX generally looks at prices from the previous 14 trading days to create a picture of trend strength.

If a trend is strong, then that can help you decide how to place your spread bets on a financial instrument.


August 29, 2008

Learn Spread Betting for Free

Practice spread betting account from GFT
If you are concerned about how to learn spread betting before you risk your own money, there is help available for you. GFT offers a free practice spread betting account.

You can learn how spread betting works, and get practice on how to trade CFDs, as well as spot forex trading. This can be very helpful, since it gives you a chance to practice before you risk your own money.


August 28, 2008

Spread Betting: Performance Spreads

Placing spread bets on performances
While placing spread bets on financial markets and instruments is fairly straightforward (the numbers that show gains and losses are easy to read), performance spreads are a little more ambiguous. However, performance spreads can be fun for many spread betters.

Performance spreads

This type of spread betting takes place when you want to wager as to what possible outcomes are available in certain circumstances. This includes wagering on such items as whether or not one company will buy another, or which stock exchange would win a bidding war to buy the London Stock Exchange.

The indexation company creates a spread for possible outcomes, and you decide which scenarios you will favour.


August 26, 2008

Free Training Seminars from GFT

Learn to use DealBook 360
Learn spread betting from GFT
If you want to make better spread betting and contracts for differences decisions, it can help to know the platform. GFT offers free training seminars that can help you learn how to use DealBook 360 to improve your trading performance.

Various classes are available in London to help you learn to use DealBook 360. These are free training seminars that can help you better learn spread betting, contracts for differences and spot forex trading.


August 22, 2008

Financial Spread Betting: Reserve Banks

Reserve and central banks set monetary policy
One of the things that can help you with your financial spread betting strategy is paying attention to what is done by reserve banks and central banks in diferent countries.

These bodies set monetary policy that can have an impact on a variety of markets, including currency, bond, stock, commodity and others.

Here are some of the more prominent and influential reserve and central banks:
  • Federal Reserve (Fed): U.S.A.
  • European Central Bank (ECB): Euro-zone economy
  • Bank of England (BoE): Great Britain
  • Bank of Japan (BOJ): Japan

August 21, 2008

Do You Have a Spread Betting Exit Strategy?

You need to know how to leave your spread bets
One of the most important things you need to consider when placing spread bets is how you will leave them. Having a spread betting exit strategy is important, since it can help you come with a system for taking profits and cutting losses.

Some ideas for creating an exit strategy include:
  • Taking profits: Planning to leave a spread betting position when you have made a profit.
  • Running profits: Continuing a profitable position until it looks ready to retreat. (This is riskier, and should only be attempted by the advanced.)
  • Cutting losses: Leaving when you want to limit losses rather than hang on and wait for a turnaround. A stop loss order can help you with this.

August 15, 2008

Spreads As Low As One Point

Placing spread bets with GFT Global Markets
One of the advantages of placing spread bets with GFT Global Markets is the fact that there are some spreads as low as one point. With such narrow spreads, it makes it easier for you to earn money when spread betting.

Here are some of the financial instruments in which you can place spread bets with a spread of only one point:
  • FTSE
  • German DAX
  • French CAC

August 13, 2008

Interest Rates and Financial Markets

Financial spread betting strategy and interest rates
Another thing to consider about interest rates is how they are often considered indicators of how well an economy is doing.
One of the things to consider when formulating any sort of financial spread betting strategy is that interest rates can have an effect on a variety of financial markets.

Indeed, interest rates affect these financial markets, either directly or indirectly:
  • Bonds
  • Stocks
  • Currencies
Another thing to consider about interest rates is how they are often considered indicators of how well an economy is doing. When interest rates are on the rise, an economy is usually growing. When they are being cut, it is usually a sign that things have been slowing down.

August 11, 2008

Spread bets and World Events

Political news can affect financial markets
Some of the things that can have the greatest effects on financial markets are world events. When considering spread bets, it is important to take stock of world events.

Some of the countries that have the largest impacts on financial markets are the major oil producing countries. This is because oil is a commodity of immense importance affecting stock markets and currencies, as well as commodities markets.

Right now, the worry over a possible conflict betwen Russia and neighboring Georgia illustrates this point. The Caspian Sea region is important for world oil production, and if supply is disrupted by war, it can cause oil prices to rise, thus affecting other financial markets.


August 07, 2008

Spread Betting and Contracts for Differences from Your Cell Phone

Placing spread bets from anywhere
Spread Betting from your cell phone
The changes to cell phone technology in recent years have made it possible to do any number of activities from wherever you are. Placing spread bets and CFDs is no different.

With DealBook Mobile, it is possible to engage in spread betting and contracts for differences right from your cell phone. This makes it easy and convenient to take care of your trades -- no matter where you are.


August 05, 2008

Spread Betting Advantages

There are several advantages to placing spread bets
When it comes to spread betting, it can be helpful to thing of the advantages. Here are some of the advantages to placing spread bets:
  • Use leverage to increase your gains.
  • Ability to short.
  • No capital gains tax or stamp tax.
  • Variety of markets and instruments to choose from.
  • Placing spread bets on performances.
Of course, it is also important to remember that spread betting can be very risky, and that while there are many advantages to placing spread bets, it is possible to lose a great deal of money.

August 04, 2008

British Financial Market Terms: Common Nicknames

Learning nicknames for financial terms
When you read financial market news, you are likely to come across a few nicknames. It can help to know these British financial market terms, used commonly throughout the UK (and beyond) to describe certain facets of the financial market:
  • Sterling = UK pound
  • Gilt = UK government bond
  • Cable = US dollar/UK pound currency pair
  • Footsie = FTSE stock index

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