FTSE Spread Betting

Started in 1984, the FTSE (Financial Times Stock Exchange) is one of the world’s leading stock markets in terms of capitalisation and activity.  From its centre in London’s Canary Wharf, the FTSE attracts investment from all over the world.  It is also particular popular among spread bettors and day traders.

But what makes the FTSE such a popular market for spread bettors?

The FTSE gets a lot of hype and activity from spread bettors for several reasons.

For starters, the FTSE contains a range of markets for traders and spread bettor to wager money on.  You can speculate on the FTSE 100 or FTSE 250 (the 100 biggest and next 250 biggest UK businesses).  The choice of markets on the FTSE offers a wider selection of businesses than stock exchanges such as the German DAX or the Suisse SIX.  These two indices provide a regulated (FSA) yet volatile enough market for spread bettors to bet on leverage to make massive gains (or losses) daily.

The popularity of the FTSE amongst traders also fuels itself by creating a healthy market for both supply and demand.  This creates a buzz about the stock exchange and keeps the securities listed in the FTSE constantly moving – perfect fors avvy spread bettors to make 1 day closes on.

Secondly, being composed of the UK’s biggest businesses in terms of capitalisation, the FTSE index contains a huge variety and portfolio of businesses in various sectors.  This not only allows spread bettors with expertise in different industries to pick a specific stock, but it also makes the market more transparent to externalities and economic situations abroad.  This transparency and predictability of the FTSE is great for new spread bettors.  You can easily read into economic trends and the latest FTSE journals to predict how it is going to affect the index overall. For example, if the NYSE closed significantly lower than usually then how is this going to affect the opening prices of the FTSE?

The openness to outside influence of the FTSE allows you to take into account difference economic fundamentals.  If the government recently published better than expected employment figures or announced plans for a reprove tax-rate on businesses than you can use this information to make massive gains on day trades.  That externalities regularly causes movement in the FTSE index is a good thing.  Being predictable also means that you can use past data and technical charts to make more accurate predictions of events in the future.

The best thing for spread bettors about the FTSE is that all spread betting platforms (including Tradefair and Capital Spreads) offer a range of markets and tight spreads.  Because of its size and popularity, you’ll also be privy to range of resources, FTSE news and traders’ journals on the internet providing trading tips for spread betting on the FTSE.

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