April 23, 2012
on the future price movements of a currency pair offers multiple benefits to traders both new and experienced; from tighter spreads to greater leverage, allowing for substantial gains from small movements in the market.
The following guide offers an overview of the foreign exchange market, as well as our top five spread betting tips.
Spread Betting Tip: Research
Forex, also referred to as foreign exchange or simply FX, is one of the most traded financial products.
It provides attractive opportunities for traders, even during volatile market conditions.
For many traders, spread betting offers an affordable gateway into the world of stocks, shares, equities and currencies - such as forex.
Spread betting with City Index
requires you to deposit only a small percentage of the total value you wish to trade, allowing you to trade across a wide range of major and minor currency pairs.
Spread Betting Tip: Strategise
Consider a plan including your personal profit goals, maximum risk allowance, trading strategies and evaluation criteria.
Trading on impulse can heighten you risk profile, leading to potential losses, so a solid plan and spread betting strategy will help you to prevent heat of the moment decisions.
Spread Betting Tip: Analyse
It's important that before you begin to trade you're familiar with both technical and fundamental tools so you can trade more effectively.
Preparation for potential movements in the market based on trends and/or news as well as learning your best approach to gain a more comprehensive overview of each currency pair.
The live markets are influenced by global, social and economic events so to be in a much better position opening new trades or exiting positions; follow daily events. If you hear about a trade of interest, do your own research making sure you're taking a self inspired view rather than one based on rumors.