LONDON, February 4, 2011 /PRNewswire-FirstCall/ -- The markets never sleep. With spread betting providers such as City Index (http://www.cityindex.co.uk/) allowing traders to speculate on indices and stocks from around the globe, technically twenty-four hour trading is possible. In reality though, to sit at a trading desk around the clock would be unwise, unhealthy and impossible. However, it would be equally unwise to open a position and leave it running without any precautions. So what can you do to maximise your spread betting potential away from the trading platform?
1) Exit Strategy
Some traders focus their analysis on finding the perfect entry price point for their spread bet. While this is important, the price at which you plan to exit the spread bet is of equal value. Concentrating on stop losses and limit orders can be an effective way of managing your trading away from a computer.
2) Timeframe Consideration
Having the ability to react quickly to market movements can make a significant difference in short-term spread betting. For this reason, unless you have constant access to a trading platform and your spread betting account, it may be worth considering more medium to long-term spread betting. For a short-term trader there can be a lot of pressure to frequently check the markets, which can lead to spread betting mistakes and indecision.
3) Mobile Trading
Mobile trading (http://www.cityindex.co.uk/trading-platform/mobile-trading-platform.aspx) now accounts for 15 percent of trades with City Index. Market Strategist Joshua Raymond believes this is down to the greater level of autonomy it allows traders. "The ability to trade whenever they want and wherever they are is completely where we feel the industry is going. No longer are you restricted to making spread bets in front of the computer."
You can get more out of your spread betting with a free City Index seminar. Find out more here:
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for differences (CFDs) and, in the UK, spread betting
We constantly look to widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer service and support. For more information, visit http://www.cityindex.co.uk/trading-platform/
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
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SOURCE City Index