Spread Betting Tips and Trading Diary

Even though Gold finishes this year 10% up, it plummeted in December and 19% off its high level reached in September.

Many analyst now argrue if a big correction is underway or it’s just a great buying opportunity. Would be interesting to hear everybody’s thoughts.

I, personally, just bought into gold with IG at 1547 (£20 per point) and will review the performance at 1700 or 1200… I currently have no stop loss attached to it and I will add to the position when it reaches 1200 level.

Finally, I decided to take a few short trades. As some of you might remember I still hold RBS, £100 per point but since RBS share price is so low (about 20p) my exposure is not massive.

Today, I tried to buy a few things:

1. Bought FTSE at 5415 with stop loss at 5395 and limit stop at 5550.

2. Bought EUR/USD but I got exited with £120 loss (only £1/pip).

3. Thomas Cook Group. Bought at 15.502 £50/point with stop loss at 11 and limit stop at 20. I bought June futures as plan to hold them for a while.

Will keep you updated on when/if I get something else.

PS: put a sell order on US crude at $102 with stop loss at $104 and will take profit at $98. $102 has a decent resistance level.

The binary betting options are getting more and more popular since it was first introduced by IG Index, which is a leader in the financial betting industry, way back in 2003. Since then, different market and platforms create their own version of this kind of betting. Furthermore, because of this new innovation in the world of financial spread betting, many investors were given new opportunities to gain profits as much as possible. Now, it is one of the major emerging options that are being used and explore by so many investors in the United States, United Kingdom and even in other parts of the world.

According to several reviews, this is actually just like the old and conventional way of spread betting. This is because it also has two (2) price quotes, which are the bid quote and the offer quote. However, one of their main differences is that the pricing for this one is not primarily determined trough the value of different underlying assets. Instead, the pricing is based on the assessment on the market movements. Hence, the quotes are just within the range of 0 and 100. In terms of how this works, take this for example that when there is a higher assessment on the movement or performance of the asset value in binary betting in a specific period, the profit that will be earned by the investor will be higher as well.

Binary betting is called as such because there are only two possible outcomes for the transaction until its expiration period. These are either the bet is lower than the quoted price or it is above it. When the movement of the price of the asset finishes at a higher value than the quoted value, then the bet will have to be completed at 100. On the other hand, in the case that the price of the said assets ends up in a lower value than the quoted price, then it will be settled at 0. Hence, this is how the profits or the possible losses of the investors can be calculated.

Aside from that, calculating both the potential profits and the losses of any trader or investor would be easier for this specific transaction. This is because since there will only be two possible outcomes, you will be able to know what your potential maximum profit is and your loss as well. This is when the investor decides to lock in a specific profit and loss limit prior to the expiration of the asset.

Dow Jones, Wall Street and S&P are all among the several instruments that are very appealing to many investors when it comes to spread betting. This is because these are included in the most popular and watched after instruments in the financial trading. Aside from that, all of these have their own advantages and features that made them really alluring for this kind of transaction. These will be discussed one by one in the section below.

Firstly, the Dow Jones, which is the short name to refer to Dow Jones & Company, is one of the most popular publishing and financial information companies in the United States. In the field of spread betting and other financial transactions, this can refer to the index of the different top US stocks that are being traded. There are several platforms where you can trade as well as engage in spread betting for the Dow Jones like in the Spreadex nd GFT.

Among the many advantages of spread betting Dow Jones is that an investor can enjoy several free perks from it. For instance, one can have a Demo Account that can be used for free. In this platform, a newbie investor can practice to spread bet while still learning how the market works. Aside from that, there are also some countries that allow the transaction from this kind to be free from tax. One of the many countries that implement this is the United Kingdom. Furthermore, there several platforms that an investor can explore in order to enjoy zero commission fees like in the City Index, GFT, IG Index as well as in TradeFair.

On the other hand, if an investor is quite new in this world of financial transaction, the Wall Street is just another term that is being used in order to refer the spread betting of the Dow Jones. As a matter of fact, most investors call the market for different instruments like the Dow Jones or Dow as the Wall Street.

Thirdly and lastly, but not the least, the S&P spread betting refers to the stocks being traded from the Standards & Poor. This is among the most popular and famous financial companies that is based in the United States as well. One of their most popular instruments is the S&P500. This instrument represents the index of 500 biggest or largest companies and firms in the country. Aside from that, this is also considered as one of the most comprehensive markets in the said country.

You know that spread betting is one of the key financial instruments that people use in order to earn income. In many countries, spread betting is actually one of the main growth markets in the past years. This is manifested through the continuous increase in the number of people engage into this kind of betting or investment. This is even though that it entails a very high level of risks. As a matter of fact, the potential looses from this kind of financial transaction is very high. However, the potential gains are equally high as well. It is in this light that one must be able to understand several economic indicators in order to make sure that the spread betting is going to the right direction.

With this, there are actually so many kinds of indicators that you can look into and use as basis for your spread betting activities or transactions. However, all of these indicators that you need to understand can be group or categorized into three classifications. These are the financial indicators, socio-political indicators as well as “economic” indicators.

On the one hand, the financial indicators can be the general category that refers to different tools like interest rate, stock prices indices and all other aspects that are related to the financial economics. Technically, this can also refer to different business indicators, which are commonly the statistics about the performance of the economy, specifically on the financial sector. This can also include indicators like money supply, exchange rate and the like.

On the other hand, the socio-political indicators must also be understood in order to successfully win spread betting. Some of the indicators that are included in this group are the employment rate, quit rates, people satisfaction rating as well as political stability. Of course, we all know that politics has significant effects to the economy of different countries. When there is a political turmoil in the country, the performances and valuations of different indices go down as well. Well, this is because most shareholders would like to make sure that their money are safe and secured before anything else.

Last, but not the least group of indicators that you need to understand is the “economic” indicators. This group specifically refers to the different indicators that reflect the movements in a certain economy. Some of these indicators include the gross domestic and national products, consumer price index, consumer and producers’ expectations as well as other indicators that directly reflect the movements of activities in a specific economy. These are also very important to understand when engaged in spread betting primarily because these are the tools that will help an investor to understand in a holistic manner all the aspect that might affect performance of a specific assets or financial instrument in spread betting.