Spread betting tips ftse 100 live

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.

Company Earnings Stock market speculators and spread bettors follow the earnings of companies making up the FTSE index which are usually released on a quarterly basis. News 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.

Interest Rates 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. If a slow moving main index is your game, try the FTSE between 9ampm. If you prefer a fast moving index, Wall Street is best between 1. 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. 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. Changes In The Constituents 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. What To Watch Out For When Trading A massive range of factors can push the FTSE price up or down — but they tend to fall into the following categories: Interest rate news: most Bank Of England interest rate changes are well-flagged, but the monthly interest rate meetings usually at 12pm on a Thursday near the beginning of the month are still worth watching out for.

So too are the minutes from these minutes, which are published on a Wednesday morning two weeks after the meeting. These can give clues as to when the next interest rate change might be, and what might be happening with other Bank Of England activities such as Quantitative Easing. Economic Indicators: almost any economic indicator has the potential to surprise and hence to move the markets.

So the impact of the news will, of course, depend on the importance of that news item and the size of the company s spread bet trading calendarit relates to. News items, by their nature, are unpredictable. However pay special attention to times when news about a company is likely to occur — e. Technical Adjustments: many shares in the FTSE pay dividends, and in doing so they transfer some of their wealth from their bank account into that of their customers. Hence their value falls, their share price falls and consequently the value of the FTSE will fall.

If you have a position open while stocks are going ex-div, the results will be broadly neutral. A long position, for example, will suffer from the value of the FTSE falling but there will be a corresponding dividend adjustment paid into your account. Similarly those holding a short position will benefit from the fall in the FTSE price but will see a dividend payment leaving their account.

However do look out for your stop loss orders and profit orders. If these orders are coming close to being executed, a dividend payment overnight may just cause them to be executed. 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. Why the FTSE? 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. Spread Betting the FTSE Practicalities 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.

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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. Company Earnings Stock market speculators and spread bettors follow the earnings of companies making up the FTSE index which are usually released on a quarterly basis.

News 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. Interest Rates 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. If a slow moving main index is your game, try the FTSE between 9ampm. If you prefer a fast moving index, Wall Street is best between 1. 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.

However pay special attention to times when news about a company is likely to occur — e. Technical Adjustments: many shares in the FTSE pay dividends, and in doing so they transfer some of their wealth from their bank account into that of their customers. Hence their value falls, their share price falls and consequently the value of the FTSE will fall.

If you have a position open while stocks are going ex-div, the results will be broadly neutral. A long position, for example, will suffer from the value of the FTSE falling but there will be a corresponding dividend adjustment paid into your account. Similarly those holding a short position will benefit from the fall in the FTSE price but will see a dividend payment leaving their account.

However do look out for your stop loss orders and profit orders. If these orders are coming close to being executed, a dividend payment overnight may just cause them to be executed. 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. Why the FTSE? 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.

Spread Betting the FTSE Practicalities 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.

One of the main reasons is the tight spread. However price is not the only advantage the FTSE offers. Consider: it trades during the European working day — so no need to become a night owl it moves enough i. When the markets are open, if you have a variable spread betting provider, you will find some of the smallest spreads on this index.

The result is an instrument that can update several times a second and can be traded nearly 24 hours a day. Say that your spread betting company is quoting When it reaches To work out how much you have won, you must figure out the point difference that you have gained. Your initial bet was at When you closed your bet it was at the selling price of That means the total number of points you gained was