Trading on the Decline of a Market - One Point Spreads on Major Indices

Sep 26, 2011, 08:00 ET from City Index

LONDON, September 26, 2011 /PRNewswire/ --

With City Index (http://www.cityindex.co.uk/), it is possible to place a trade even when the markets are on the decline. The spread betting provider currently offers 1 point spreads on four major indices - Wall Street, UK 100, France 40 and Germany 30 - during market hours.

After last week saw sharp losses endured by global stock markets on fears of a worldwide slowdown in activity, investors are looking to the G20 to deliver credible coordinated action to help calm equity markets and maintain global growth.


On 21st September 2011 the Dow closed down 391 points while the FTSE 100 dipped below its pivotal 5000 level for the first time in a month, experiencing losses of 1.5%. Trading was very choppy, with investor sensitivity high and reacting to any news, comment or speculation out of the G20. 

You can use spread bets to speculate on price movements irrespective of whether the markets are rising or falling. If you go long (buy), your profits will rise in line with any increase in that price. If you go short (sell), your profits will rise in line with any fall. 

 Find out more about the City Index spreads, or learn more about tax-free* spread betting, at http://www.cityindex.co.uk/1point-spreads/. Alternatively, read on for an overview of the four major indices:

Wall Street

The Wall Street index is based on 30 large publicly owned companies. Unlike the UK 100, it is always the same 30 companies in the index, which is something to bear in mind when formulating your spread betting strategy. Market trading opens at 14:30 and closes at 21:00 GMT, during which time you can take advantage of City Index's 1 point spreads.

UK 100

The share index of the UK's 100 highest stocks. As London is the financial centre of Europe, the UK 100 is Europe's most important index. The UK 100 represents around 80% of the London Stock Exchange's market capital. All companies listed on the UK 100 must include PLC in their name, indicating they are public limited companies. Trading hours are from 08:00 to 16:30 GMT.

Germany 30

The Germany 30 is measured by the performance of the 30 largest German companies, based on order book volume and market capitalisation. The companies featured in the Germany 30 are decided on quarterly review. The market hours fall between 08:00 and 14:30 GMT.

France 40

As with the Germany 30, the companies listed in the France 40 are included based on quarterly review.

Whichever index you choose to spread bet on, be sure to know the risks involved. City Index offers a range of seminars to increase your knowledge of spread betting and risk management. Learn more at http://www.cityindex.co.uk/learn-to-trade/seminars.aspx

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

*Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.

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 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.

SOURCE City Index