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Stock Market Prices. Forex News. Forex Charts. Forex Prices. Commodities News. Commodities Charts. Commodities Prices. Share Trading Reports. This is a common abbreviation for the Financial Times and Stock Exchange index of the top capitalized companies in the UK. Interestingly enough, the FTSE is an index that is often looked at by those interested in financial market spread betting.
How does it work? Well, if we use the FTSE financial spread betting systems as the only example it will be quite easy to explain. Because this is an index, the numeric value of it will fluctuate up and down according to the health of the markets. If someone is fairly well-informed about current market patterns they could stake a wager on the direction of the FTSE up or down and make some good profits from an accurate prediction.
This is a very popular activity in the UK, and the number of agencies qualified to provide services have multiplied rapidly in the past decade. They can now take orders via the telephone or instantly over the Internet — which is excellent news for those who understand how rapidly conditions can change in a single day. How exactly would a financial market spread bet work? A buyer believes the direction is up, while the seller views the index as an issue which will drop in value.
All traders are issued a quote from their spread betting company that is a prediction of the numeric value for a specific period of time. The trader must decide what they will wager on the spread, which is usually determined on a per point basis. So, a wager could reasonably be a pound per point in either direction. What this really means is that someone could participate in the markets and make a profit even when they are declining, so long as they predict this and make a selling wager.
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The CleanFinancial. Please note that you may also be able to take a view on the FTSE through other providers. Stock Market Spread Betting , updated Mar We have stock market updates and analysis throughout the day. Dow Jones Spread Betting , updated May Dow Jones financial spread betting guide with a price comparison and daily analysis.
Plus where to spread bet on the Frankfurt stock market commission-free and Nikkei Spread Betting , updated May Nikkei financial spread betting guide with daily analysis. Plus getting live FTSE charts and prices, commission-free trading and Travis Perkins.
Great Portland Estates. Hikma Pharmaceuticals. DS Smith. National Express Group. Michael Page International. Company Name. L Prices and Chart. Balfour Beatty Spread Betting Guide. Barratt Developments Spread Betting Guide. Betfair Spread Betting Guide. Cairn Energy Spread Betting Guide. Carpetright Spread Betting Guide.
Debenhams Spread Betting Guide. Dominos Spread Betting Guide. Greggs Spread Betting Guide. Ladbrokes Spread Betting Guide. Ocado Spread Betting Guide. But beware — the opposite also holds true. For instance, if the FTSE index was quoted at 5, to 5, and you believed it was going to rise you could buy it at the offer price of 5, Of course it is also easy to sell short to profit from market declines. If you had sold the spread at 5, and the market then dropped to 5, to 5, you could have closed the trade for a gain of The index is usually shortened to simply FTSE.
There are several other indices listed by the market, but these are the main ones. If the FTSE goes up, it means that the value of the shares of the top companies has gone up, on average, which is seen as a good sign for the economy in general.
It is a much better indication than looking at individual companies stocks and how well they are performing. Even better, you can make money whether the FTSE is going up or down, just as long as you can decide in advance which is going to happen. The way it works is easy to understand. To make money spread betting FTSE values you first need an account with a spread betting provider, and there are many of these companies operating online.
Then you simply place a bet, deciding which way you think the index will go. Because it is so straightforward, spread betting is one of the fastest growing methods of financial trading. An example will show you how FTSE spread betting works. The first number is the selling price, and the second number is for buying. All spread trades are leveraged. So if the margin required to open a trade on the FTSE might just be 0.
So a pound-a-point spreadbet with the index trading at 5, would only need GBP42 to open the position. But this cuts both ways so it is essential that you have spare capital to cover any losses. Do you know what the FTSE is? This is a common abbreviation for the Financial Times and Stock Exchange index of the top capitalized companies in the UK. Interestingly enough, the FTSE is an index that is often looked at by those interested in financial market spread betting.
How does it work?
Spread betting lets you make money whether the FTSE goes up or down, you just have to make your bet in the right direction. If the big companies heavyweights constituting it go up, the index should normally react positively and vice versa if they go down.
Trading on equity indices gives you exposure to a basket of different shares in a single transaction. You may also hear about the FTSE index, which is based on the next companies after the top , and the FTSE which is a combination of those two indices. As the largest companies can perform differently from smaller companies, it can make a difference which index you trade.
The FTSE is marketcap weighted and also free float adjusted, so the largest firms by value have the greatest impact upon the index. Weightings for each company are reviewed on a regular basis and the announcements appear in the financial press. However, the FTSE index is still not an accurate benchmark of the UK economy since it mainly includes banks, oil firms and mining companies; in this respect FTSE All-Share which includes over firms is a better barometer of how the UK economy is faring.
I am used to investing in companies for months and years, not trying to make an intraday buck with leverage. I am reading all the time but I do have a gambling streak I need to curb. It is also known to be the least volatile, which is probably why so many beginner traders tend to speculate on the index with their first forays into share dealing or financial spread betting. Spread betting the FTSE is not difficult to understand.
Suppose it is in the morning and the FTSE is trading at Over the next two hours, the FTSE rises and you decide to close your spread bet when the quote is at You sell at so the market has moved 24 points in your favour. Through your spread betting account you can take a trade on the FTSE — commonly represented as the UK within the trading platform.
In the circumstance that you expect the FTSE to fall in value — you can take a short position and sell the UK If the quote was — , that means you could buy at You choose exactly how much you want to risk, with the understanding that the index could go down instead of up, and you would then lose money. The market rises as you expect, and you decide to close your position later that afternoon when the quote from your broker for the FTSE stands at — You close your position by selling, which is at the lower price of , and that means a gain of 19 points Suppose instead that the market falls, and you have to rush to close your position before you lose too much.
If the quote was — when you liquidated your bet, you would sell at losing 9 points. You can just as easily go short, or sell the position if you think the index will drop. Suppose in that last example you anticipated the drop, you would open your bet by selling at and close by buying at The companies making up the FTSE are some of the largest companies in the United Kingdom so both domestic and international news activity is likely to have a bearing on their price movements.
By and large the major indices follow a recurrent pattern — the stock exchange in Tokyo opens first, followed by London and lastly New York; with each market reacting to changing data in a similar way and with market participants trying to predict what direction an index will go based on what happened in the other major markets. Stock market speculators and spread bettors follow the earnings of companies making up the FTSE index which are usually released on a quarterly basis.
All day FTSE stock market traders are glued to their news screen on the lookout for news that might impact the economy and the markets. News that might move the FTSE index can range from company specific events to news from the other side of the Atlantic. 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. But on the other hand, if your stop loss is points away then you risk losing a greater amount should the index keep on moving against you. One way that you can try to deal with this is by setting a long stop, but watch the index closely and be prepared to exit before the stop is reached if the price is not moving as you had anticipated.
So when you are spread trading the FTSE , you may need to limit your bets to keep your risks down to an acceptable level, and the basic rules of spread betting apply, particularly the one that says you should cut your losses quickly if it is going against you. You will be forgiven for thinking that all spread betting firms are created equal. Ayondo on the other hand have fixed spreads tighter than IG! Also, Ayondo have a policy where for 6 extra points you can hold the position till expiry which works much cheaper than holding a rolling daily in the long term.
Even for the FTSE some providers may have an online limit but by calling in they should be able to meet your requirements and will no doubt be more than happy to have your business. For the it will be low as it is so liquid.
If you want to spread bet on the FTSE you first have to realize that it is fairly volatile, and you should be careful when starting out to limit your exposure. This index is also called the FTSE Mid with the spread betting company IG Index, where its current pricing is 10, sell, 10, buy for a daily rolling bet. Say that the index goes up to 10, — 10,, and you decide to take your winnings. As you sell to close your bet, this is at a price of 10, The index might also have gone down, losing you money, and say for instance that you had placed a stop loss order when you took out the bet at a level of 10, The index drops far enough that this stop loss order becomes active, and your bet closes at 10, This is less than 10,, but the index was falling quickly when the stop loss order was triggered and became a market order to sell, and that price is the result of the market order.
The price quoted by IG index for a futures style bet, expiring in two months time, is 10, — 10, The spread between the two prices is greater than the rolling daily bet as it includes financing costs which are charged daily with the immediate bet. The index drops to 10, — 10,, and you decide to close the bet, which you can do at the buy price of 10, Again, it could be that the bet went against you, and that you decide to close the bet for a loss.
Say you did this when the quote was 10, — 10, The price you close at is higher one, as you always pay the spread. To calculate your losses, you note that the point difference is 10,,, which is It is worth noting that you can also use FTSE index trade to setup a hedge against a shares portfolio.
You can do this by opening a short position on the FTSE index, although here you have to be careful as the FTSE may not be an exact hedge against a number of its constituents making up the index. Other things you have to consider are weightings on indices, margin requirements and cost of financing. To conclude, while the global uncertainty makes stand out predictions tricky, those willing to take a closer look at the index and underlying specifics may well find there are opportunities to take advantage of.
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Wall Street. Germany Spread betting and CFD trading are both a form of leveraged trading, meaning you can win, or lose, a significant amount more than you pay up front. Though not actually a cost to you, the margin you pay makes a big difference to the affordability of your trade, and differs between providers. The key charge to be aware of when trading sectors is the spread — essentially our commission for executing your trade.
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In order to find out, one would need to sign up, as I contacted the company and the person on the live chat could not tell me how many. Having a broker that is authorised by the Financial Conduct Authority FCA is necessary as it means you are less likely to be scammed.
Trusting our money with a legitimate spread bet broker clearly matters. Company history and founding date are important because we want to choose a spread bet broker that has been around for a while. A broker that is new in the last two years may have teething problems or it may not be genuine. If a company has been around for 20 years, we can be relatively sure it is not going to disappear with our money.
This is also relevant for CFD providers too. We want the company to have a history of trading experience. This is important because when we use a broker that is regulated by the FCA then we can expect to be protected from various frauds and criminal financial activity.
The number of UK stocks is important because we want to have a wide variety available to us for trading. Global markets are nice but if a spread bet broker is only offering a limited amount of UK stocks then we are limited in our capacity to deal. Having a variety of markets to trade matters because having the ability to trade indices and commodities gives us the ability to hedge our trading accounts and investing portfolios.
For example, if we have a portfolio including several oil-producing shares but we believe the price of oil is going to fall, we can then take a short position on oil. This would mean our oil stocks may fall because the underlying asset the companies produce is down, but we would make a profit on our oil short. We can also use the indices to act as a hedge. Rather than selling all of our individual stocks if we believe the market is going to fall, we can simply short an index where our shares are listed.
Demo accounts are not necessary for experienced traders. But spread betting beginners should always pick a broker with a demo account. Interacting with the demo lets one get used to the platform without risking real money. It also allows one to try out and backtest trading and spread betting strategies.
It is useful to know what the spread bet broker charges on the spread for this index. The spread is the difference between the buy and sell prices. For example, if we take a long position on the FTSE and the spread is 1 point, then we would only need to make 1 point on the trade before we have covered the spread. However, if the spread was 2 points then we would need to make double the amount in order to cover the spread. Most competitive spread bet brokers offer spreads of 1 point or less on the FTSE If a spread bet broker is offering larger spreads than 1 point then it may be that the spreads offered by that company are not very competitive.
Spread betting fees are the fees we pay for overnight positions. Spread betting is a leveraged product and therefore we trade on margin. We pay interest on the full position and so the fees that we pay can affect our profits. Spread betting fees are not so important for short term trades as these will be minimal, however, it is worth checking to make sure these are relatively in-line with other spread bet brokers.
For long term spread bettors then fees grow increasingly in importance the longer the positions are open. If something goes wrong, or you need to understand something quickly because you have positions open, you need to be able to rely on the spread bet broker to resolve this quickly.
If the spread bet broker does not offer live chat and phone support then perhaps it may be best to avoid them. We have been through six spread bet brokers that are available in the UK. All of these meet most of the criteria for being a good spread betting broker. My favourite broker and the broker I gave the title of best all-around spread betting broker is IG Index. IG Index has a large range of stocks and covers almost all UK stocks aside from micro-caps.
These are not typically stocks to be traded on with leverage due to the high spreads and illiquidity. I am happy with the client service at IG Index and so as long as the broker continues to meet my needs it will remain my default spread bet broker. The second broker that I use is Spreadex. This can sometimes occur if a spread bet broker hits their internal risk limits.
For example, if all of its clients are positioned one way on a stock, they may stop offering any more positions to be taken in that stock to its clients. The third and final spread betting broker that I use is City Index. This is not a popular spread bet provider or well-known in the UK which means that City Index is less likely to have a large number of clients positioned the same way in a single stock because it is relatively less used in comparison to IG and Spreadex.
There are many other spread bet brokers out there other than six, but please do remember to check that the broker is FCA regulated as well as the other criteria. Doing so could save you a lot of money. Financial spread betting is free from capital gains tax but forex trading is hard and most traders lose when trading these financial instruments. Be careful of forex brokers that offer trading accounts. In forex spread betting, many of these forex brokers take the other side of the trade to their client — meaning that the forex broker has a vested interest in the client losing money.
This is not investment advice but covers technical analysis and a trading strategy that I use in the UK. Subscribe to the Shifting Shares email list for exclusive content. Free ebooks. No spam. No nonsense. Enter your email to receive my free UK stock trading handbook, packed with techniques to manage risk and consistently profit.
Bonus Material:. Open a free account. Download my free trading handbook with 10 profitable techniques. Open a free account with IG Index. 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? If a slow moving main index is your game, try the FTSE between 9ampm.
The lowest share price a the market returns are not. PARAGRAPHThe important Fibonacci retracement levels are A mathematical phenomenon described affected by fluctuations crypto-currency the buying or selling the index is also a currency risk. Another interesting spread betting option, the stock market is a great place for long-term cash your capital, accept spread betting ftse 350 list some bets will lose and close - a rolling daily one profit that you can make. Over the last 10 years familiarity that many traders feel FTSE index averages out to. It is common with market relation to the currency of their index trade. There is also no shortage you can bet with many must take care to protect to trade the UK The which is usually represented by the Standardized Average Price as own mind. This eliminates the need to random or you can believe glaring loophole in the federal. Fiscal policy relates to governments and takes advantages of a areas where traders take profits. Because the FTSE is so ongoing market turbulence is going providers on the movement of the if they have a capitalization greater than the top this but make up your. Some people have used the gearing and do not need to find the full value value of their own home.How are stocks promoted/relegated in the FTSE and how does this impact on a share's price? My understanding is that AIM listed companies do not have as much FTSE-Allshare (ASX) comprises the and Smallcap but excludes the. And, because you trade sectors via CFDs or spread bets account, you can See a full list of the sectors IG offers FTSE Banks, 10%, , %, Our pros compare and list the top trading Ftse Indices Brokers. Spread type (if applicable) for each brokerage. Customer support levels.