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Central banks and US payrolls in focus - Weekly Bulletin
31 Oct 2016
Revised Trading Hours - UK British Summer Time (BST) ends, 30th October 2016
28 Oct 2016
US GDP in focus - AM Bulletin
28 Oct 2016
US stock indices still range-bound
27 Oct 2016
Equities drift on mixed earnings
27 Oct 2016
Earnings season, oil and the US dollar - Video Update
26 Oct 2016
Apple disappoints - AM Bulletin
26 Oct 2016
Silver range-bound - PM Bulletin
25 Oct 2016
Equities up on deals and earnings - AM Bulletin
25 Oct 2016
Spread betting charges – overnight financing - Trading Guide
24 Oct 2016
USD rally continues - Weekly Bulletin
24 Oct 2016
Deutsche Bank trades at pre-DOJ fine levels : AM Bulletin
21 Oct 2016
ECB Decision in less than 400 words - PM Bulletin
20 Oct 2016
Oil’s move to a 15-month high supports global markets - AM Bulletin
20 Oct 2016
Intel buck earnings trend as the Fed takes centre stage again - PM Bulletin
19 Oct 2016
WTI eyes resistance around June highs - PM Bulletin
18 Oct 2016
US/UK inflation data in focus - AM Bulletin
18 Oct 2016
How to know what to spread bet on : Trading Guides
17 Oct 2016
Dollar up on December rate hike speculation - Weekly Bulletin
16 Oct 2016
Oil sparks recovery on Wall Street - AM Bulletin
14 Oct 2016
FOMC minutes - hawkish or dovish? - PM Bulletin
13 Oct 2016
Weak Chinese trade number hits miners - AM Bulletin
13 Oct 2016
US indices range-bound ahead of election - Video Update
12 Oct 2016
FOMC minutes in focus - AM Bulletin
12 Oct 2016
Sterling at fresh multi-year lows : PM Bulletin
11 Oct 2016
Brent crude hits 12-month high - AM Buleltin
11 Oct 2016
How Spread Betting Works : Trading Guides
10 Oct 2016
Another disappointing US payroll report - Weekly Bulletin
09 Oct 2016
Sterling “flash crash” and US Non-Farm Payrolls - AM Bulletin
07 Oct 2016
Non-Farm Payroll look-ahead - PM Bulletin
06 Oct 2016
AM Bulletin: Equities up on data releases and oil
06 Oct 2016
Video Update: OPEC’s production cut promise poses some questions
05 Oct 2016
AM Bulletin: Precious metals slump on USD rally
05 Oct 2016
PM Bulletin: Sterling lurches lower
04 Oct 2016
AM Bulletin: Firmer start for global equities
04 Oct 2016
Trading Guide: How to use Stop Losses in spread betting
03 Oct 2016
Weekly Bulletin: Important week for data releases
03 Oct 2016
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A spread betting account gives you trading access to a huge array of financial markets. Stock indices, company shares, forex and commodities are all available along with more esoteric products such as Exchange Traded Funds (ETFs) and American Depositary Receipts (ADRs). With so much choice it sometimes can be hard to know where to start, particularly if you’re coming to spread betting for the first time. So it’s understandable that some of the first questions people ask are: what’s the best market to spread bet on and where can I make the most money?

The simple answer is that the best market to spread bet on is the one you know most about. That in turn should give you the greatest opportunity to make money. After this you should consider trading times and other factors such as the cost of trading one market compared to another in terms of dealing spread and margin requirement.

It can be a bit overwhelming to log on to the platform for the first time and be confronted with loads of different markets with their prices constantly updating. Some novice traders are tempted to look at all that activity and jump straight in hoping to make what looks like a quick, easy profit. Resist that temptation! Instead, the first thing to do is to simplify things. You can do this by picking a few markets with which you are most familiar. Or, if you are a newcomer, you may want to start off with a major stock index, such as the UK100, and a major currency pair such as the EURUSD. These are popular markets which have the advantage of tight spreads and plenty of liquidity which in turn means they have the lowest dealing costs. The less money you spend on the actual trade, the more you have to speculate with.

Some of the most liquid and heavily traded markets are major stock indices such as the US30 (Dow Jones Industrial Average), US500 (S&P500), German DAX or the UK’s FTSE100. Popular commodities include oil, gold and copper. There are also the major currency pairs, such as EUR/USD, USD/JPY, GBP/USD and AUD/USD which are very actively traded, particularly during European and US opening hours.

Another factor to consider when deciding what to spread bet on is the trading session itself. There are three main ones: the Asian Pacific, European and US trading sessions. Depending on the market you‘re trading you’ll see peaks in volume and volatility during one of these sessions. This is when you should look for opportunities as the markets are moving and profit potential is high. However, so is the potential for suffering a trading loss. As a consequence you may decide that there are certain times of the day when market volatility is such that it is too risky to trade. The important thing is that you identify such trading periods so you are forewarned. It is impossible to anticipate every period of raised volatility but a bit of market study will certainly help.

It’s also very important to work out what sort of trading suits you best. Some people like short-term day trading. Typically, this involves trading actively but never holding an open position overnight. This suits people who have the time to watch the markets during the day or evening, or who can study charts and use technical levels to set up their opening and closing orders for the following day. For people who can’t make this level of commitment then longer-term position taking could be the answer. Longer-term traders tend to deal less frequently and try to identify trending markets.

But whether you’re a short or longer-term trader you should practice different strategies and closely follow market trends and patterns in order to identify high probability trades. This is where charting and technical analysis is so useful. The more you concentrate on defining your strategy and exercising it on one market, the more likely you are to increase your chances of scoring profitable trades.

In conclusion, there’s no one market that you should be spread betting on. But studying just a couple of markets at a time can help you to define a personal trading style. So take your time to understand what you’re comfortable with and practice applying technical analysis to charts. The experience gained this way will boost your profit potential and then knowing which market to trade will be a no brainer.

Disclaimer:

Spread Co is an execution only service provider. The material on this page is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by Spread Co Ltd or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

 

Posted by David Morrison

Tagged: Trading Guides

Category: Trading Guides


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