Top 5 Spread Betting Tips for Trading Forex by The Spread Bettor
Apr 23, 2012, 02:30 ET
LONDON, April 23, 2012 /PRNewswire/ --
Spread betting 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.
Spread Betting Tip: Manage your Risk
The City Index trading platform lets you minimize losses, lock in profits and enter the markets at predetermined levels in order to help you to seize opportunities.
It is best to apply an effective stop loss and limit order strategy and let your account run itself, giving you more peace of mind trading.
Spread Betting Tip: Stay Disciplined
Not every trade you place will be successful and in a losing situation, it's easy to let losses amass hoping prices will turn around.
To avoid this mistake, it's important to remember why the spread betting position was made originally. For example experienced traders cut their losses quickly, run their profits and use their trading strategy and plans to help enforce these rules.
Spread betting on a range of markets offers traders many benefits. The key is to research, plan, manage your risk, stay disciplined and follow the news.
Learn more about spread betting on foreign exchange rates with City Index.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
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 difference (CFDs) and, in the UK, spread betting.
We constantly look to 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. Visit http://www.cityindex.co.uk/ for more information.
SOURCE City Index
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