Apply Now. Investors can also speculate on individual UK shares. A FinancialSpreads account provides investors with real time pricing on more than a thousand spread trading and CFD markets such as the UK and a large variety of other indices, shares, commodities and foreign exchange prices. Indicative Prices Prices shown are delayed by 15 minutes, indicative only, and subject to our website terms and conditions.
With Financial Spreads clients have access to a real time charting package for the UK and over 1, other markets. UK Rolling Cash Sell UK March Futures Sell Financial Spreads provide a free Demo Account that allows investors to try out new trading strategies, practice with new trading orders, analyse the live charts and practice trading on markets including the UK The Financial Spreads Demo Account doesn't just cover a handful of markets; traders are also able to gain experience on a large variety of FX rates, stocks and shares, commodities and stock market indices.
Trading the FTSE in October In the past, the month of October has seen remarkable moves in the financial markets, and it's usually the ones that cause the most pain that are remembered. However, for the records, it is the crash of that remains etched on investors' minds.
For the FTSE , the average monthly declines in October significantly exceed those of the average falls in any other month. But for all its sins, October is actually one of the more bullish months of the year in terms of number of rises compared to number of declines. There have been 21 gains out of 28 for the UK index, a record only surpassed by the month of December. Of course, December is the most bullish month of all as investors ride the Christmas rally higher almost every year.
Written October You should consider whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice. The information and comments provided herein should not be considered as an offer or solicitation to invest. Under no circumstances should anything herein to be construed as investment advice. The information on this site is not directed at residents of the United States or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Apple, iPad and iPhone are trademarks of Apple Inc. App Store is a service mark of Apple Inc. All rights reserved. If you decide not to close your trade and the trading session ends then your trade will automatically roll over into the next session. If a trade is rolled over then you will normally either have to pay or receive interest for overnight financing based upon whether you are betting on the market to decrease or increase.
For additional details also see Rolling Spread Bets. Where a point is 1 point of the stock market index's price movement. You work out how much you are going to trade per point, e. Higher than The UK increases and the financial spread betting market is moved to You can opt to let your spread bet run or close it and lock in a profit.
In this instance you decide to settle your position by selling the market at The UK decreases and the spread betting market moves to Create Account. Pricing delayed by 15 minutes. For live market pricing login. Spreads AM - AM : 3. Guaranteed Order Min Distance 2. It can be a more cost-efficient way of having market exposure to UK companies than trading individual shares. Live moves of the FTSE can be followed in a daily price chart. Why trade Indices?
Trading opportunities Media and analysts present regular trading opportunities on Indices. Trade on diverse sectors Indices benefit from market movement across a greater variety of sectors.
The spread is actually the difference between the price where you buy at and the price that you sell at. Your winnings will be based on the number of points you fall below or above the spread. But fluctuations in the daily FTSE can be very unpredictable and even volatile especially during the opening of the market for the day. You can also take half the profits in your position and continue to use the other half in betting.
Financial Betting Financial Betting Strategies. Financial Spread Betting. Now you can seamlessly trade futures and options through your mobile phone. Check out which financial trading companies offer a mobile trading platform for your smartphone or regular mobile. How Is It Done? The Risks of the Volatile Top Market But fluctuations in the daily FTSE can be very unpredictable and even volatile especially during the opening of the market for the day.
Broker Scam Listing. Create Account. Pricing delayed by 15 minutes. For live market pricing login. Spreads AM - AM : 3. Guaranteed Order Min Distance 2. It can be a more cost-efficient way of having market exposure to UK companies than trading individual shares. Live moves of the FTSE can be followed in a daily price chart. Why trade Indices? Trading opportunities Media and analysts present regular trading opportunities on Indices. Trade on diverse sectors Indices benefit from market movement across a greater variety of sectors.
Spread betting the FTSE and other markets allows you to bet, or take a position, on whatever you think a financial market will do next. The more the market moves in your favour, the more you profit, with unlimited potential. Conversely, the more the market moves against you, the more you could lose — and you may lose more than your initial deposit.
So beware! Before you start you will need to open an account. Spread betting is an alternative option for investors to traditional trading on the stock market. It offers access to a wide range of markets from Indices like the FTSE , or individual shares to commodities or currency exchange rates. The Bet: Unlike traditional share-dealing, you never own the actual share or commodity. You are simply making a call on whether you think it will go up or down in value.
You stake a certain amount of money per point movement — the more it moves in your favour the more money you make, the more it moves against your prediction, the more you lose. The Spread: The spread is the difference between the price you can buy at and the price you can sell at. You will buy at the higher price if you think the market will rise Go Long , or sell at the lower price if you think the market will fall Go Short.
The tighter the spread, the smaller the market has to move for you to make a profit. By correctly predicting the market fluctuations, you can make profit as the trading price falls above or below the spread.
Equally, if it moves against you, i. You can protect yourself with stop losses to minimise your loss if a position goes against you. As a beginner, always use stop losses, as they will cut losers for you rather than holding on, thinking it will come back.
In a nutshell, that is how spread betting works. Its harder than it sounds, otherwise everyone would do it and everyone would always make money!!!! Here it is important to have access to live-feeds as the financial markets are very efficient and most news will already be discounted in the price by the time the masses read the story on newspapers.
Daily high-low fluctuations of around 60 points are common for the FTSE although movements of points or more are not unheard of during volatile periods. FTSE day traders will keep a watchful eye for any prospective change in interest rates as this will also have a consequent impact on stock market valuations. In addition large companies are normally less volatile than smaller ones which in turn makes the index less volatile. With the FTSE being relatively stable, that means price fluctuations are not very wild by and large there is always the exception and therefore neither are your chances to make large gains in a single trade but of course this also means that this reduces the possibility of sudden, sharp index movements catching you by surprise.
The other downside to trading the European Indices is that beyond a certain time of the day, they stop being independent and start to wait for the USA markets to open. They then follow what the USA markets do until their close. This makes the FTSE less of an ideal benchmark of how the UK economy is faring given its relatively narrow breadth and heavy dependence upon banks, oil companies and miners.
And why do they trade these key numbers are they thinking people who hold a FTSE company may decide to sell when the index itself reaches a key number? Answer: No not just random markets. Round numbers, pivots, support and resistance all are real psychological areas where traders take profits and open new positions. Madness of Crowds. Pit traders know it, day traders know it and the institutional program traders know it. You can believe they are random or you can believe they are traders fear and greed.
It is a market capitalization index, which means that it includes the largest companies on the London Stock Exchange. All this really means is that the shares used for calculating capitalization are available on the open market. They adjust to the constituents of the index every quarter. Companies from the FTSE , which covers the next largest companies, can be promoted into the if they have a capitalization greater than the top 90 in the FTSE.
This restriction ensures that there is less promotion and demotion than otherwise, which might foster uncertainty. The 10 largest companies in the FTSE include three oil and gas companies and two mining companies. Because the FTSE is so well known and so heavily traded, you are sure to find that any spread betting company lists several available bets — a rolling daily one and several different future-based bets.
There is also no shortage of advice to be found on the Internet on how to trade the UK The best advice is to read this but make up your own mind. It is common with market indices that they fluctuate a lot, and the UK is no exception.
This is perhaps why it is one of the favourites among spread betters. Another reason would include the familiarity that many traders feel to the product. But anyone who says that the stock market is a great place for long-term cash as it will always beat any other investment should face up to the fact that they are talking averaging out over a very long-term. The actual figures suggest that the market returns are not so great.
Over the last 10 years the total return from the FTSE index averages out to 4. Along with small-cap shares, the index has been disappointing for a buy and hold investor. As always, the caveat when spread betting is that you must take care to protect your capital, accept that some bets will lose and close them quickly, and enjoy the profit that you can make from the volatility.
You are worried that the ongoing market turbulence is going to negatively impact your blue chip UK shareholdings so you decide to hedge your exposure by shorting the UK with a spreadbet. Trade responsibly: Your money is at risk. Overnight Rolling Charges? Dividend Policy? Guaranteed Stops?
Pricing delayed by 15 minutes. For live market pricing login. Spreads AM - AM : 3. Guaranteed Order Min Distance 2. It can be a more cost-efficient way of having market exposure to UK companies than trading individual shares. Live moves of the FTSE can be followed in a daily price chart. Why trade Indices? Trading opportunities Media and analysts present regular trading opportunities on Indices. Trade on diverse sectors Indices benefit from market movement across a greater variety of sectors.
Short the markets Trade on falling markets going short as well as rising markets. This article is intended to be a 10 minute introduction to trading the FTSE. The value of the FTSE goes up and down with the value of its shares. Hence the index is used as an indicator that shows how UK companies and to a limited extent the wider UK economy is performing.
But what is the FTSE ? The FTSE market consists of an index that is constituted of the largest listed companies in the United Kingdom by market capitalization. All these companies are listed on the London Stock Exchange. Market capitalization refers to how big or small is a company and is calculated by multiplying the number of stocks in issue by the prevailing share price.
Spread traders trade in pips and as such moves in indices are substantially amplified. Since then the make-up of the index has changed enormously — mergers and bankruptcies have meant the index only has 21 of the original constituents are left in it. The largest of the survivors is BP, although a fair number of constituents have changed their names too.
The process for reviewing the constituents in the index is straightforward. All companies listed on the LSE are ranked in order of their market capitalisation. A committee made up of independent market experts meets in March, June, September and December and considers which companies should be allowed into the FTSE and which should be dropped. However they are still worth watching out for as it helps to understand the index you are trading.
It is important to note that the FTSE is heavily exposed to mining shares so you have to keep an eye on that particular sector. A massive range of factors can push the FTSE price up or down — but they tend to fall into the following categories:.
The largest company in the FTSE that could properly be described as a British is Tesco, and even the supermarket behemoth is increasingly exposed to international markets. In the past the FTSE might have been a good way to play a UK recovery but this is simply no longer true; the index is today dominated by global commodities and financial services enterprises, whose earnings are predominantly international in nature.
For example the FTSE currently has 11 miners in it; all of their share price are hugely affected by what goes on in China. My point here is that when trading the FTSE you need to keep an eye on what is driving the larger underlying components. The FTSE consists of companies, of which 10 make up about 45 per cent of the index value. The German Dax consists of 30 stocks, representing the creme-de-la-creme of German commerce and industry.
Together, they are considered the two leading stock indices in Europe. I realised that there is a statistical correlation between the two stock indices significant enough to bet on. Good question as there are so many other things to trade, and the trade setups that we take do apply to other markets, but some traders find Indexes easier to trader compared to Forex.
If you take time to work it all out then yes you can do really well out of Forex pip for pip def more than the Indexes, but the learning period is def longer and harder as you have to develop a six sense as to what the big banks are up 2. You also need and this is where most new trades blow even more money to know about cross currency analysis and yes once you understand how that works you can make money. It is my thought that this offers the new trader the best chance of learning trading basics and then yes once you learn your own rules you can trade anything you like.
The FTSE index benchmark can be stagnant for months moving in a range of maybe 40 or 50 points but in turbulent market conditions it can move by over points in a single trading session. You can spread bet the FTSE using either the daily rolling bets or futures.
Daily bets are more suitable for short-term trades and comes with very tight spreads — typically at just 1 point. As the name suggests daily rolling bets can be rolled over from one trading day to the next, subject to a small financing charge each time this happens. Longer term trading views can be taken using the quarterly stock index futures. The spread for futures is wider but these contracts do not incur daily financing charges.
Initial margins usually work out to around 40 times the stake for both FTSE daily bets and futures. If you are considering a medium or long term trade you will need to utilise fairly wide stops to take account of the day-to-day market fluctuations. I noted that at about 4.
The adjustment took 25 points out of the FTSE. This is normal and there is no net effect on your position. The FTSE is the single most traded instrument at many spread trading companies.