The word Forex is an acronym for foreign exchange and its trading involves trading between different currencies from different countries by buying and selling them against each other. Therefore, forex trading can involve simultaneous buying and selling of two different currencies such as Euro and US Dollar by buying one of them while selling the other at the same time. Forex trading typically works through a forex broker or market maker, who decides upon a pair of currencies that they expect to experience changes in value and place a trade accordingly.
A drastic market movement can be either higher or lower, and will follow some major news announcement or event. A good trading strategy is betting that the initial market movement will reverse, therefore, making this a reversal trade.
In order to start making money from spread betting, you need to open a spread betting account with one of the major spread betting companies.
Financial spread betting on small cap shares carries an exceptional mix of reward and risk. This is basically due to the wide spreads and extreme volatility on the small cap quoted shares (caps £1,000,000) within the FTSE and Alternative Investment Market. A few guidelines to follow if you wish to spread bet on these small cap shares is outlined below.
The VIX is also known to many as the’ fear index’ or ‘fear gauge’, and it in actuality a volatility index. The VIX is used to measure the 30 day S & P 500 volatility of implied S & P options. It is quoted in percentage points and will then be approximated into the projected movement of the S & P 500 index over the up coming 30 day period, which in turn is annualised.