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9th November
2014
written by spread bettor

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.

It is common to thing that one spread betting account is enough, however this assumption is incorrect and even wrong. Financial spread betting companies tend to offer ongoing promotions to keep their players playing. This is a good enough reason to have a few accounts active to enjoy as many promotions as possible.

Opening a spread betting account is easy, all it takes is a few minutes and your details. It’s important to enter your real details when you sign up. If you enter fake details, you may not be able to deposit money and even worse, you won’t be able to withdraw your winnings.

Even if you do manage to open an account, you might be needed to supply documents such as billing documents or a copy of your payment method (credit card) and some time a copy of your ID. This is needed to prevent payment fraud and make sure the person betting is the person paying.

Once you begin playing you might start receiving promotional offers by mail and maybe even be contacted by a personal account manager which will give you tips and offers.

Be sure to open your account with a respectful company. You can read reviews about the company you are registering with, the internet is full of comments about the various online spread betting companies.
You might want to see a license to deal with spread betting (UK only) and in this case you know you are in good hands and most likely to get paid your winnings. In addition you need to make sure the spread betting company has 24/7 support – you wouldn’t want to get stuck with nobody to talk to when you need one.

Don’t be afraid to pay online. Many does it and it’s perfectly secure (look for the lock sign in your browser and you will note that it exist in most betting sites – SSL secure sign). If you don’t want to use your personal payment method online which is perfectly fine, there are other ways such as anonymous pre paid cards or other payment methods such as western union which will keep your identity private and your payment method secured.

To summarize this article – don’t settle for just one account with a spread betting company as you might miss out on great promotions, don’t use fake details and don’t be afraid to use your payment method to pay online.

12th September
2014
written by spread bettor

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.
The forex market can be an extremely treacherous place for the uninitiated and it is better to seek help from other likeminded traders. Therefore, traders gain immensely by forming or becoming members of any pre-existing forex forum, which can provide them with valuable insight and exposure to a broad spectrum of forex traders and methods. These forums can be the ideal platform to discuss the common problems that traders face while doing their business in various different foreign currencies. This platform can also provide their embers with the chance of analyzing the different market trends with the benefit of having more than one head working on the same topic. Therefore, forex traders would be able to see the market trends more clearly and not suffer from a feeling of isolation when things go bad. Traders must remember that if they wish to become successful in their trade then they must forego of the tunnel vision that most of these traders seem to suffer from, and it can cause a lot of problems. Therefore, it is better if the traders find a forum to their liking at the earliest.

The traders would also benefit from becoming a member of any of these forums by learning to read the forex charts properly from any of the more experienced traders. Reading the chart properly may seem complicated at the first glance, but it is nothing more than a scientific way of predicting the likely rate of the different currencies over various timeframes. The timeframe can vary from 1 second to several years with a candlestick, line or bar depicting the price of different currencies. One of the major benefits of learning to read such a chart is to be able to apply technical analysis while conducting trade. Even if technical analysis does not form the primary method of trading, traders can use it successfully to predict the likely changes in prices of various currencies that can help them in making maximum profit. Studying these charts properly can help the traders in making the most profitable forex quotes between the base currency and the quote currency. The quotes consist of two components, the bid price and the ask price with the difference between these two going to the forex brokers as commissions. It is important to be correct on the bid price for the trader to make good profit out of their investment.

The internet is a repository of information and forex traders can opt for forex wiki to gain information regarding their trade. Apart from that, they can also rely upon various news sources for getting an idea about the latest trends in the business. However, getting access to any reliable forex news source can be quite difficult at times with DailyFX.com and FXStreet.com being two quality news sources. Forex traders can also take advantage of the forex calculators available online that provides the current exchange values of almost all the leading currencies in the world. Therefore, traders can very easily find out and do essential calculations needed for making profitable quotes and bids.

4th June
2014
written by trader

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.

An example of this type of drastic movement is as follows:

There is an important press conference, after which the FTSE-ALL-SHARE Index quotes are extremely high, however, the prices do not stick, and the market drops back down.

Binary betting on this type of market is an extremely popular strategy, as this kind of market has a tendency to make these types of drastic moves.

We have compiled a list of what are key elements to be successful Binary betting using this strategy.

1. Examine the factors you wish to use to make your decision on the binary bet you will make. Do your research prior to the upcoming figure announcement. Decide if you are going to make an hourly bet or daily bet.

2. Remember the days when these figures are announced; as an example the first Friday of the month is when the United States announces the unemployment figures.

3. Do not follow the news, but watch the markets. When the market makes a sharp significant move quickly, bet the opposite way.

4. Typically a down-bet trade will range from 10 to 20 under, which provides minimal risk, but provides a far greater reward. When the trade goes in your favour the binary bet should settle at 100. If you wish, you are able to sell anytime, prior to the expiration, of the trade.

5. The likelihood of having a successful bet is 65-70 %. Even if the trade loses it is possible to still see a profit. The risk to reward ratio is approximately 5 – 1.

6. Binary bets will always be quoted, and there are many markets that will quote hourly. Binary betting hourly allows trading on a short term basis, but you must be alert and flexible.

Binary betting trades move fast, and you should fully understand how binary bets work. Initially, it is wise to start with minimal positions to minimise your risk.

28th January
2014
written by trader

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.

If you do wish to spread bet small cap shares, please keep in mind that buying and selling quickly could be risky, due to the smaller trading volumes. Quite often these share prices tend to move at a much slower pace, and you may have a tougher time trying to exit these trades quickly. Liquidity in this type of market is generally can cause havoc in the trade. Also to note that with narrower spreads, brokers tend to require much higher margins.

It is without doubt important to follow current news channels, as both good and bad news tends to be the main influencer’s in prices changes on small cap shares. Where most spread bettors will be able to use analysis and technical data for their indicators on prices movements on larger shares, small cap shares are not influenced in the same manner.

Small cap shares through the AIM are quoted though Market Makers using the market maker system. Spread betters should watch for wider spreads. Wider spreads indicate larger price movements, and that is what is needed to profit from spread better. Generally, less market makers and smaller liquidity on individual stocks will result in much wider spreads, and provide a route for more profit.

If you wish to use stop loss options to minimise your risk exposure, you must use extreme caution so you do not accidentally get ‘stopped-out’. Alternative Investment Market (AIM) shares tend to be vulnerable to high levels of volatility, with that said, it can be a good thing if you are on the correct side of the trade. Placing your stop losses correctly requires one to carefully examine their position. If the stop loss are placed incorrectly, or too close to the buy / sell price, they can easily be stopped-out. To add to this gapping can occur if the price movements fluctuate too quickly and the spread betting broker is not able to initiate the stop loss order at the spread betters price.

10th December
2013
written by trader

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.

By using the VIX investors can trade volatility without the necessity of factoring price shifts of the underlying.

Traders whom are looking for a risk management tool, will often use the VIX to hedge their investment portfolios from rapid market decline. The VIX is also used as an important tool to speculate how volatility will move in the future.

The VIX is an important tool for Binary Options/Betting traders.

A Binary Bet/Option is an all or nothing bet, and it is based upon the depending on the arranged price of the underlying product and is relative to the strike price. The Binary Call option will pay a fixed cash amount if the underlying index is at/or above the strike amount, or nothing at all if it is below the strike amount at expiration of the contract. The Binary Put option will pay a fixed cash amount if the underlying index is below the strike amount, or nothing at all if it is above at the expiration of the contract.

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