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.

Let's examine each product category.

Shares

Individual share trading is the most common trading that you can find elsewhere in traditional stockbrokers. All spread betting companies (at least the ones I know) offer trading in a large set of companies, across several markets. Since spread betting has its origins and is most popular in the UK, most companies do cover a large number of UK shares, usually more than what comprises the FTSE 250 or even FTSE 350. At the same time you will find shares from several European countries, the US, and in some cases from other markets like Australia, Canada, and other. If you have any particular preference just investigate spread betting companies to check if they offer what you want.

Indices

Sometimes it is easier to bet on an index than on a particular company. There are traders that specialize in index trading and spend years always trading the same index or a short list of indices. They feel safer on index trading avoiding non-systemic risk. Spread betting allows you to trade all major indices like the FTSE 100, the Dow 30, the Nasdaq 100, many European and sector indices, and a couple of other indices from markets across the globe. The choice here is really large, but again it varies from company to company.

Forex

If you like currency trading then you will be happy with the choice you will find on spread betting companies. There are usually dozens of currency pairs to trade. All companies offer you major pairs like EUR/USD, EUR/GBP or GBP/USD, but you will find others like USD/CZK and GBP/ZAR.

Commodities

A portfolio without some commodities is not a portfolio, and nowadays with all recent rallies in precious metals, gold and soft commodities, a trading platform should offer traders the opportunity to profit from such price movements. Spread betting can usually be done on several commodities including gold, silver, brent crude, US crude, sugar, coffee, and many soft commodities.

Bonds and Interest Rates

To complete the offer, you can also spread a bet in interest rates and bonds. You will find the Bund, the GILT, US 10 year, US 30 year, Euribor 3m/6m, and others.

As you can see, financial spread betting gives you a complete choice of instruments to trade. There are many ways to win…and as many to lose. You just have to be careful, apply a strategy, and use spread betting as a very effective way to be on markets.