Betting Exchange United States - Can You Make Money FTSE Betting?
Betting Exchange United States
In the UK, spread betting is big business - and one of the most popular avenues is FTSE betting. The FTSE is the UK's major stock market index of 100 of the largest companies listed on the London Stock Exchange. It is the most widely-followed stock market indicator in the UK. Betting Exchange United States
So, how can we make money in spread betting the FTSE? All spread betting providers carry the FTSE index either as a Rolling Index, or as a Future. The Rolling Index is really the cash, or instantaneous value of the index as it changes throughout the day through changes in the constituent share prices. The Future is the advance value of the Index denominated by the various months in which the Future expires (for example, the December 2010 FTSE is expires in December).
Because the FTSE Future has a definite expiry date, I like to trade the Rolling index, as it allows for holding a trade open indefinitely. With spread betting, you can bet as little as 1 per point, and up to tens of pounds per point. That puts it within reach of even small trading accounts. It also is used to "hedge" positions in individual shares.
If a trader/investor believes the market is due for a fall, they can sell the FTSE against their holdings, thereby locking in much or all of their gains, while keeping their dividend-paying shares.
For spread betters, we wish to make profits by correctly predicting the direction of the FTSE and take a position ahead of the likely move. Recently, the FTSE has been very volatile, with wide swings both up and down. Taking a long-term position has been hazardous, so I made a decision to try and catch the shorter-term swings. Getting in and out quickly has been necessary to build profits.
Betting Exchange United StatesTo give me a good entry point with low risk, I look for rallies to sell into, or dips to buy. And to identify a good entry point, I use Elliott Wave and Fibonacci analysis, together with support/resistance lines, which I draw on my chart. If I can combine a good point, together with Momentum confirmation, I pull the trigger.
But before I enter the market, I work out a suitable place to set my protective stop-loss. This has to be within my 3% Rule. This Rule states that the loss, if I am stopped out, must not exceed 3% of my account size. For example, if I have a 5,000 account, my maximum potential loss would be 150 on any single trade.
OK, I have a FTSE position, and the market is going my way. Now comes the difficult part! How to manage the trade. Because I want to lose as little as possible on my losing trades, I will move my stop-loss to break-even as quickly as possible. This is my Break-Even Rule. When to move it? It is partly an art, I confess. If done too soon, you risk being shaken out of a great trade too early.
When to take profits? Again, this has to be an individual decision, depending on your aversion to giving up gains you have worked hard to make. One rule you could employ is to take profits when Momentum readings are extreme.
Betting Exchange United StatesBetting Exchange United States - Can You Make Money FTSE Betting?
By: Betting Expert
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