FTSE Spread Betting Guide

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I have just been watching the Chancellor of the UK present the budget this lunchtime. A quick look at the markets and you will see that they are down by 1.5%. Most people who have stocks and shares will have lost money today but there is a way of making money during falling markets and that is through FTSE spread betting.

The vast majority of people don’t know what FTSE spread betting is or how to do it. It is different to owning actual stocks because you make a bet of the direction of the market. If you think the market will go up you go long, and if you think the market will fall you go short.

There are a couple of different styles of bets that you can use. The first is the binary bet. This is very similar to bets in the sporting arena where you know the how much you can we or lose before you start. It is a very transparent way of doing it.

There is an alternative way of FTSE spread betting and that is through the daily bet or the rolling daily bets. The most significant difference between the two is unlike with the binary bet the amount you can win or lose isn’t fixed. With the binary bet you win the same amount no matter if you were just right or very right. With the daily bet options you will win a lot more being very right than being just right.

This can be a really great way of trading but if you get it wrong you may end up losing a lot of money. This is because you are trading with leverage and can lose more money than you initially put down.

It is up to you to decide if FTSE spread betting is suitable for you. One thing I do know that it doesn’t incur capital gains tax (CGT) in the UK. As the Chancellor put up CGT earlier today it does make it more appealing.

Get more information about FTSE spread betting go to Tom’s blog. Here, Tom will explain the key concepts to more advanced FTSE spread betting strategies.

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Financial Spread Betting Strategies

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Are the spread betting strategies that you are using at the moment working? Do they include the correct risk management? This is something traders often forget. A lot of people think that risk management is the most citical element of spread betting strategies.

There are countless stories of traders going broke and often that is because they have overexposed themselves. If you’re risking 10% of your capital each trade, then you only need 5 losers in a row and you have lost half of your capital. Part of trading is making sure you are around for the next trading day. Even if you are around, then doubling your capital to get back where you started is no mean feat.

This should show you that you need to incorporate risk management into your spread betting strategies. Stop losses are also critical for risk management and successful spread betting strategies need to incorporate the 2. You need to be disciplined not to move your stop losses in the wrong direction. It is ok to move your stop loss to reduce exposure. It is never ok to move your stop loss to increase exposure. If you are wrong then the trade will exit. There will always be another trade. You can even re-enter the exited trade if the conditions become right again.

Think about including a break in your spread betting strategies. Take a rest once you reach a certain number of losing trades in a row. This is very effective as by taking a step back you can analyse where you are going wrong and coming back fresher builds your confidence.

Obviously the entry level is important but often many traders overlook the risk element. Keep this in mind when formulating your spread betting strategies. Remember that if you can’t play the game, you can’t make any money, and making money is why we (or at least I) do this!

Looking to find the best information on spread betting strategies, then visit my site to find the best advice on spread betting strategies.

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Forex, Spread Betting Strategies.

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The internet is now flooded with different strategies on how to trade forex, however seldom go into depth on spread betting strategy which is the manipulation of your trade once active to maximise profit and limit risk. There are many different features available through your spread betting platforms some complex and some very simple. Today I am going to write about two very effective spread betting strategies that should be available on every platform.

It is important not to confuse spread betting strategy with trading strategy. Trading strategy is used to determine when to enter and exit a trade where as spread betting strategy is the strategy used within the platform used to place the bet once in the trade. Spread betting strategy is such things as the amount of stop loss you wish to use or how much you are willing to lose if the trade goes against you.

It is recommended that you never trade without a stop loss or even enter a trade without one in place. The forex market is the most volatile in the world and can move 100’s of pips quicker than you can close a trade. Once you have entered a trade it is the manipulation of the stop loss that is considered as good spread betting strategy. Once you have entered a trade using your trading strategy it is as important to have a spread betting strategy to run in your trading plan.

A popular method of spread betting strategy is to move your stop loss up to your entry point and to eliminate the risk of losing any money. The problem with this simple strategy is the market often will take a reversal past your entry point before again pushing in the right direction. Although not making a loss profits will also be hard to come by. You can expand on this strategy by taking out 80% of your profits on the primary push and leaving 20% risk free or with a slightly bigger stop loss.

A trailing stop loss is a stop loss that will follow the price up or down at the distance you set. This type of spread betting strategy is popular with longer term traders that often have stop losses in excess of 100 pips. I use a unique method of combining this strategy with the previous short term trade as to leave my 20% running into maximum long term trades with limited risk from my original trade.

Adam had been trading forex for years with little success. Adam, at first had no experiance of the forex markets so hesigned up to Colin Atkin’s private members club. Colin is a professional trader who shares his trading live, all you have do is watch & copy what he does and take the proceeds. Since Adamsigned up to Colin he has had the cash to invest in other projects.

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