Choosing a market to spread bet on
Having covered the essentials of spread betting in our ‘Spread betting and CFDs’ course, it’s time to take a closer look at the range of markets available to you and the mechanics of taking a position on them.
For each asset type, we’ll explain the important differences between spread betting and trading on the underlying markets.You’ll learn about the special advantages spread betting offers, as well as the risks involved.
You’ll also discover how providers price their markets, plus what determines their spreads. And by the end of the course, you should feel ready to choose a market that will suit you and the way you want to spread bet.
Example lesson: researching markets
In this course you’ll find exercises, charts and illustrations to help you understand the different markets available to spread bet on. To give you a flavour of what to expect, here’s an extract explaining what to consider when you choose a market:
Do your research
When choosing a market, it’s also crucial to consider these factors:
- Dealing times – When is the market open? Are you free to deal at those times? Will you be able to react to any big price swings?
- Volatility – On average, how many points does this market move in an hour/day/week? Are you comfortable with that range?
- Costs – What is the spread, minimum position size and margin requirement for this market? Can you afford to deal on it, and how much will you gain or lose for every point of movement in the price?