Howto & Guides

Tutorials and guides for spread betting.

How Much Am I Trading In Spread Betting?

Published by Filipe R. Costa on Mon, 27/02/2012 - 15:58
money

Traders sometimes become a little confused when using spread betting to place their trades since they don’t figure out how the amounts really compare with traditional trading. A spread bet is defined in terms of stakes per point rather than quantities thus resulting in a confusion to the trader not used to it. This article explains how you can compare the amounts involved in a spread bet with traditional trading.

Should I Pay For Guaranteed Stop Orders?

Published by Filipe R. Costa on Mon, 19/12/2011 - 17:38
guaranteed stop loss

Most traders that are new to spread betting and CFDs usually express some concerns due to the widely advertised warning stating that a trader can lose more than what he has in his trading account. That is a true statement but it is not new or specific to spread betting.

The US Dollar Index In Spread Betting

Published by Filipe R. Costa on Mon, 18/07/2011 - 17:19
usd graph

The US Dollar Index is a composite of six USD pairs created by the FED in 1973 to keep track of the value of the US currency. Instead of searching for the best USD pair to trade, a trader may get exposure to this index as an alternative strategy. The USD Index is currently available at some spread betting providers.

7 Spread Betting Advantages

Published by Filipe R. Costa on Tue, 05/07/2011 - 15:15
number seven

Spread betting has several advantages over traditional trading making it one of the most effective ways of trading. Most people still have mistaken ideas about spread betting thinking it is a way of gambling but that is not correct and serious traders should consider it as one of the most powerful ways to get exposure to several markets from a single place.

Spread Betting Providers Initial Margin Requirement Comparison

Published by Filipe R. Costa on Tue, 17/05/2011 - 12:37
margin call

Sometimes it is useful to use margin to the limits, especially when we trade indices and forex markets and when we are trading with just a few pounds. Not being able to open positions when there is money in our account is frustrating. Cut The Spread investigated initial margin requirements across spread betting providers identifying the best places to trade.

One Extra Reason To Use a Stop Loss Order

Published by Filipe R. Costa on Fri, 13/05/2011 - 12:31
stop loss

There are many reasons to use a stop loss order. The main idea behind them is to avoid losing more than you can afford or more than it is recommended in a single trade or bet. Risk management and portfolio rules dictate that we should go out of losing bets at some point instead of letting them roll until our funds are completely burned out.

Currency Pairs Nicknames

Published by Filipe R. Costa on Wed, 30/03/2011 - 15:29

Many times, traders and professionals simplify currency pair names and refer to them using nicknames. The use of jargon is common amongst professionals that deal with something everyday, or even every hour and minute. Check this guide for the most commonly used currency pairs nicknames.

Spread Betting and Portfolio Diversification

Published by Filipe R. Costa on Thu, 24/03/2011 - 18:08

A central issue in financial spread betting is money management. You can possess an excellent set of entry and exit rules and be a very lucky guy, but without proper rules applied to money management, you won’t be successful.

Why Use Stop Loss Orders?

Published by Filipe R. Costa on Tue, 22/03/2011 - 10:11
stop loss order

Financial spread betting has several advantages over traditional trading: you don’t pay broker commissions and stamp duty, there is no capital gains tax due, it is easier to access markets, and it is possible to make huge profits with small investments. But at the same time, the leverage you get from margin trading triggers some challenges in terms of money management.

Which Products Can I Trade?

Published by Filipe R. Costa on Tue, 15/03/2011 - 15:40

Spread betting is a very complete option that allows you to get involved in several markets. The exact products you can trade vary with the spread betting company, but you can expect that almost all the big names allow you to trade on a large variety including shares, indices, forex, commodities, bonds, and interest rates. Besides having access to this variety of instruments, you can either be long or short on almost all of them, and you just need a margin to open a position.

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