Why Spread Co | 0.8 Spreads from Spread Co

Spread Trading firms prices are quoted with a ‘spread’. That is, they have a price you can buy at – the ‘offer’ and the price you can sell at – the ‘bid’.

The wider this spread, the more it will cost you to place the trade. The tighter the spread, the cheaper it is for you to trade. For example, trading £10 a point on a product with a 2pt spread will cost you £20 to open and close the trade, so the product has to move at least 2pts before you start making a profit on the trade. This ‘spread’ cost is how a Spread Trading firm makes its income.

So a firm that charges tight spreads is better for you, the customer. In fact, tight spreads consistently comes out at the top of platform features demanded by clients in surveys such as the Investment Trends Report.

Spread Co offers some of the tightest spreads in the industry – our EURUSD spread is just 0.8 and this is FIXED 24-hours a day, unlike some of our competitors who may widen their spreads during the day.

Our UK100 spread is also only 0.8pts during UK market hours and goes out to just 1.8 from 4.30 – 9pm and 2.8 from 9pm to 8am. Compare that to 5 and even 6pts to trade the UK100 at night with some of our competitors.

Our US30 spread is also only 0.8pts during US market hours, going out to just 2.8pts out of hours, making it one of the tightest spreads you will find to trade the Dow Jones Industrial Average across all Spread Trading providers.

Our tightest spreads are available up to a maximum of £50 a point and spreads increase on a sliding scale basis for trades above £50 a point. Click here for full details.

At Spread Co we offer a relationship management service, to all our customers, as standard. There are no fees or minimum balances required to receive the quality service all our customers deserve.

Your Relationship Manager will ensure that you get the best from our entire offering; they will work with you to keep you informed of all the latest market news, provide you with comprehensive training on our SATURN Trading platforms and remain your single, consistent, point of contact.

Your Relationship Manager can help you with:

• deciding between a Spread Trading account and a CFD Trading account
• choosing which CFD Trading account will best fit your trading style
• utilising all the tools and features available across all our trading platforms
• answering any queries you may have regarding your account(s) and trades
• keeping you informed of the latest news in any particular area of the market

Call us on 0800 078 9398 or email sales@spreadco.com to speak to a member of our team.

At Spread Co, we offer the following three trading platforms:

SATURN Web is our next generation web-based trading platform filled with trading tools, a professional charting package and intuitive trading functionality so you can trade with confidence and ease.

SATURN Trader is our powerful downloadable trading platform which is completely customisable on one or multiple screens, maintaining its superior speed and performance throughout. It is also packed with tools and features to put you in control.

SATURN Mobile  is our iPhone and Android phone trading app, giving you access to real-time price updates for hundreds of markets, live account valuation and the ability to trade on the go. You can now keep up with the markets and your positions wherever you are, 24 hours a day.

One of the key things you must realise when Spread Trading is that it can be very risky. Trading with leverage can result in losses that can grow quickly if a position goes against you.

If you are to maintain profitability as a trader you need to be able to manage your risk. In order to do so you need to use stop losses effectively.

A stop loss is an order you can attach to an open position, or a trade order you want to place, that will automatically close your position if that level is reached. These are designed to prevent you losing more than you are prepared to should a trade go against you.

An example: You buy the UK100 index at 5750 as you think there is good support and that it could rally towards 5900. You want to trade £5 a point, but you also feel that should the FTSE 100 fall below 5700 you want to close your position.

So you set a stop loss order at 5690, which is 60 points away and your risk is now capped to 60 points X your stake of £5 a point, or £300 in total. Now should the FTSE fall over the next few days to 5700 and then to 5690, your position is automatically closed for a loss of £300.

There may be occasions when a market ‘gaps’ against you though, when a product, say an equity, that doesn’t trade overnight opens below where your stop loss was placed. This may result in you losing more than you had intended to. This is why it is recommended that for added security you place a ‘Guaranteed Stop’ on your position.

There is a small fee for having a Guaranteed Stop on your position, but it adds complete security of knowing that you will never lose more than the stop level you have selected.

On the other side, you may want to set a Take Profit Order or a Limit Order, to close a position that has reached your profit target – you can’t always be watching your trade during a trading day!

So let’s take the example above again  - you buy £5 a point of the UK100 at 5750 and you think it will reach 5900 before stalling. You therefore set a Take Profit Order at 5890, to close the position at a profit automatically, should it get there. Now should the FTSE rally to 5890, your position is closed for a 140 point profit at £5 a point, netting you a total profit of £700 on the trade.

So make sure you use these tools available in the Spread Co trading platforms to help you control your risk and maximise your profits.