In financial spread betting, analysis is vital. Fundamental analysis and technical analysis are two popular ways of using the information available to interpret the markets on which you wish to spread bet.
B is for Bear or Bull:
The essence of online spread betting. Do you believe that the market price is going to fall (bear) or rise (bull)?
C is for Commodities:
You can trade on a huge variety of commodities. Commodities spread betting markets range from corn, coffee and crude oil to silver, sugar and soybeans.
D is for Demo Account:
Spread betting demo accounts represent an ideal way to get used to a real trading platform without risking any of your hard-earned capital.
E is for Education:
Spread bettors never stop learning, so spread betting seminars and webinars can make the difference for traders of all levels.
F is for Forex:
Also known as FX or Foreign Exchange. Forex is the most widely traded market in the world. With City Index, you can take a position on over 50 currency pairs including EUR/USD at just 2 points and GBP/USD at 3 points.
G is for Guaranteed Stop Loss:
Guaranteed stop losses reduce your spread betting risk in a near-identical way to standard stop losses, except that they guarantee to close your spread bet at the precise trigger value you have set, regardless of market volatility and gapping. For this added insurance, guaranteed stop loss orders incur a small premium.
H is for Hedging:
You can protect your spread betting positions in moments of volatility or uncertainty by 'hedging' with CFD trading.
I is for iPhone Spread Betting:
iPhone spread betting allows you access to your spread betting account at any time and in any place.
J is for Jargon:
Ever shorted the pork bellies at a pip from the resistance level? To a beginner, spread betting can seem another world at first; it takes time to understand it.
K is for Knowledge:
Knowing your preferred spread betting markets inside out means being able to react effectively when news that affects them emerges. For example, if you were to spread bet on International Airlines Group shares without knowing that a spike in crude oil prices may result in downward pressure on the share price, your spread betting account balance could easily suffer as a result.
L is for Leverage:
Financial spread betting is a leveraged product, which means that it requires you to deposit only a small percentage of the full value of every spread bet you make. This means that in spread betting the potential for profits, and losses, from your initial outlay is significantly higher than traditional trading.
M is for Markets:
You can spread bet on thousands of global markets including indices, shares, forex, commodities and interest rates.
N is for News:
Give yourself a spread betting edge by keeping on top of market developments and financial news.
O is for Orders:
Limit orders are the upside version of stop losses, instructions to buy or sell a better price than where the market is currently trading.
P is for Planning:
Instead of trading on instinct and feeling, always have a considered, rational strategy in place before you start spread betting. Outlining your entry, objective and exit before each spread bet means that you know exactly how far to let your profits run and precisely when to cut your losses.
Q is for Quote:
A spread betting provider's quote will incorporate its spread - the difference between the buy and sell price of the financial product in question.
R is for Risk:
Financial spread betting is a leveraged product which carries a high level of risk. Even the best spread bettors make losses - the key is to make sure that your profits outnumber your deficits. See 'Planning'.
S is for Standard Trading:
Spread betting offers an alternative to standard trading, providing additional features such as leverage, the ability to go short (trade on a falling market) and tax-free profits*.
T is for Technology:
From spread betting webinars to mobile trading platforms, embracing technological developments helps you to get the most of your financial spread betting.
U is for UK 100:
A share index of the 100 largest companies (by market cap) listed on the London Stock Exchange, also known as the FTSE 100.
V is for Volatility:
The more volatile the market, the greater the scope for bigger spread betting profits and losses.
W is for Wall Street:
An index of the top 30 US traded stocks, also known as the Dow Jones. The City Index spreads on Wall Street are just one point during market hours.
X is for X Marks the Spot:
With the advent of mobile trading and iPhone spread betting, spread bettors can now trade wherever they want.
Y is for You:
From day trading and short-term spread betting to medium and long-term trading, understanding your own natural spread betting identity helps to maximise your trading potential.
Z is for Zero Tax*:
Spread betting is currently exempt from UK stamp duty and UK Capital Gains Tax*.
Spread betting and CFD trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.
Content approved / provided by City Index Limited which is a company registered in England and Wales, number: 1761813. Authorised and Regulated by the Financial Services Authority. FSA Register Number: 113942.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'A to Z of Online Spread Betting', Review by D. Jones, last update: 25-Jul-11
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Risk Warning:
Spread Betting carries a high level of risk
to your capital and you can lose more than your initial investment,
it may not be suitable for all investors. Ensure you only
speculate with money that you can afford to lose and that you fully
understand the risks involved and seek independent financial advice where necessary.
Disclaimer:
Online-Spread-Betting.com does not endorse the information and
analysis available on this site. It is provided purely for information
purposes and is delivered as a personal view of the writer. Under no circumstances
is the information hereon to be used or considered as, an offer to sell, or a
solicitation of any offer to buy. The website content does not constitute investment
advice and neither the individual contributor nor Online-Spread-Betting.com accepts any
responsibility for any use that may be made of the content.
* Tax Free Trading:
Tax law is subject to change. It may also differ if you pay tax in a jurisdiction outside the UK.
