Spread Betting Solutions

Pricing Calendar Spread Options - A Conservative Trading Plan

Tue, 31 Aug 2010 02:47:56 -0500

Pricing Calendar Spread Options Implied Volatility IV for a stock is like a rubberband.It has the potential to stretch go high and compress go very low but ends up somewhere near the normal state most of the time during a year. Calendar Spreads initiated in a low IV period will benefit from any rise in IV even if the price of the underlying does not change much. Calendar spreads initiated in a high IV environment run the risk of going down in value if IV starts going down. Therefore, the options Implied Volatility IV for the underlying should be below approximately percentile percentile is a value below which of all the IV values are found for the entire year. Pricing Calendar Spread OptionsPick a stock from a stable industry for Calendar spreads. Avoid stocks in bio-technology sector or sectors that are extremely volatile in the current market.Look at price...

Forex Binary Options Brokers - What are Your Options Regarding Forex Options Brokers?

Mon, 30 Aug 2010 02:21:32 -0500

Forex Binary Options Brokers Forex option brokers can generally be divided into two separate categories: forex brokers who offer online forex option trading platforms and forex brokers who only broker forex option trading via telephone trades placed through a dealingbrokerage desk. A few forex option brokers offer both online forex option trading as well a dealingbrokerage desk for investors who prefer to place orders through a live forex option broker. Forex Binary Options BrokersThe trading account minimums required by different forex option brokers vary from a few thousand dollars to over fifty thousand dollars. Also, forex option brokers may require investors to trade forex options contracts having minimum notional values contract sizes up to ,. Last, but not least, certain types of forex option contracts can be entered into and exited at any time while other types ...

How to Trade the Forex Markets

Sat, 28 Aug 2010 00:50:03 -0500

The forex markets are often an interesting if not a confusing place to trade. The Japanese Yen is still seen as the strong man of the major currencies yet that is rather at odds with the country's fiscal position. Not only that but the EuroYen rate is still flirting with the nine year lows around the . level.Looking at the EuroSterling rate, whilst the currencies continue to fight over the same ground, Sterling does look to be drifting somewhat. In June we almost hit ., a level not seen since November . We are now trading well under the . level.There is one major factor in the UK's favour though and that is that its problems are solvable by itself. The UK can determine economic policy to suit its own needs. Elsewhere Spain, Greece, Ireland, Italy etc are stuck in a monetary straightjacket that is controlled by the stronger European economies of Germany, France, Holland etc. The future for the weaker economies appears bleak and that in turn should ...

Long Straddle Option Strategy - Nine Powerful Options Strategies For Turbo Charging Your Returns in Any Stock Market Condition

Wed, 25 Aug 2010 02:31:44 -0500

Long Straddle Option Strategy While the bulk of your funds should be invested in stocks, using a system with a proven trading edge, a small percentage of your funds can be used with these options strategies to turbo-charge your returns by allowing you to profit from any type of stock market situation. Long Straddle Option StrategyBefore we get into the strategies, let's review some option basics:. An option is a contract to buy or sell shares of a specific stock at a certain price by the third Friday in a certain month.. A call option is a contract to buy shares of a stock at the strike price by expiration. Since the value of a call option goes up when the stock goes up, the buyer of a call option is bullish, while the seller is bearish.. A put option is a contract to sell shares of a stock at the strike price by expiration. Since the value of a put option goes up wh...

Study The Facts on Financial Spread Betting

Tue, 24 Aug 2010 02:38:46 -0500

As with trading with CFDs, financial spread betting provides the investor the chance to trade in vast amounts of stocks as well as the open stock market indexes. You must note that although the term betting is within this particular type of margined trading, there is no actual 'bookie' or 'dealer' that will keep the upfront wager in the event you lose. You are essentially betting against someone else.Spread betting performs in this way, you cautiously observe the index, afterward you determine just what stock you intend to bet on - be it going upwards or going down. After this you give your bet to someone which is termed the spread bet dealer, which is just a broker or intermediary. The dealer will likely then make use of a computer system and match the trade against someone with the opposite view, within the trading marketplace. This will go on all day for buy and sell.To be able to place these bets, the trader should first know and understand the NTR Notional Trading ...

Forex Mini Account Uk - Forex Mini Account Vs Forex Regular Account

Mon, 23 Aug 2010 01:20:50 -0500

Forex Mini Account Uk If you're new to the world of Forex then you're probably considering opening a forex mini account to start with. This article will tell you exactly how a mini account differs from a regular forex account. Forex Mini Account UkThe detail will vary slightly from one broker to another, but basically the main differences reflect the fact that a mini account is the same as a regular account, except that it's on a smaller scale.Typically, the minimum amount you need to open a regular account is around , to ,. A mini account can normally be opened with just . Some brokers will accept less, and one site I looked at recently only required . This brings forex trading within the reach of people with only a small amount of money to risk.A regular account will trade currency in lots of ,. This is rather confusing but you don't have to know exactly wha...

Contracts for difference: CFD trading is on the rise

Wed, 18 Aug 2010 02:18:39 -0500

The recent economic crisis affected different people in different ways. Whilst many businesses suffered from the lack of credit facilities and tightened consumer purse-strings, those with mortgages and other credit facilities reaped the benefits of rock-bottom interest rates. Indeed, where there are losers there almost always are winners too. If we are to take any positives from the economic downturn, one would perhaps be that people are keener than ever to watch every penny and have a greater degree of control of their financial wheelings and dealings. With interest rates unlikely to rise anytime soon, now could be a good time for private investors to look to the markets rather than having money sitting gathering dust in a bank account. Contracts for difference CFDs, for example, are enjoying somewhat of a surge in popularity amongst private traders and investors, due to the flexibility they offer traders to go 'long' and 'short', leverage their trades and hedge their...

Price Action Forex System

Tue, 17 Aug 2010 02:36:27 -0500

To effectively and efficiently trade the forex market you need a system that is designed around a trading strategy like price action analysis. Trading off of simple price action setups will provide you with a clear trading method that is both definable and flexible at the same time. Many forex traders have difficulty finding a trading method that possesses both of these characteristics, typically a method will be either a rigid set of trading rules with no flexibility, or so flexible that you aren't even sure how to spot an entry.When trading off of a price action forex system , you will learn how to develop a flexible market mindset, this will allow you to adapt to changing market conditions. So, rather than following a strict rule set which essentially is built on the false assumption that the market is completely predictable, trading with a price action forex system will provide you with the ability t...

Forex Trading Game Download - Learning to Trade Currencies Online With a Forex Trading Course

Mon, 16 Aug 2010 04:08:59 -0500

Forex Trading Game Download I began my spread betting journey with a Forex course which showed the fundamentals of Forex spread betting starting with a forex course by "Andy X" called 'insider signal'. The course showed the use of 'Metatrader' - a trading platform which you can download to follow the markets, and trading fundamentals and signals. I signed up with a spread betting company called capitalspreads.com which allows you to trade from your laptop at home.The good thing about most of these spread betting companies is that they allow you to demo trade - you get a 'play' account with 'play' money to learn the process of trading without having to risk real money. The bad thing about this is that it can give you a false sense of security. Trading with real money is very different and the added pressure can easily distract you into making bad decisions and breaking from y...

Max Forex Online Legal - What Does it Cost to Start Trading Forex

Sun, 15 Aug 2010 02:22:29 -0500

Max Forex Online Legal It has become increasingly popular for individuals to trade forex from home as sole traders since the internet developed with fast connections. The forex market is the largest market in the world and boasts a massive trillion dollars traded every day and is well known for its volatility in the currency pairs. It is important to gain some knowledge of this market if you intend to place your own trades or you can pay a professional trader to make the investments for you, in this particular article I am going to concentrate on the cost of setting yourself up as a sole trader. Max Forex Online LegalIt is a misconception that you need thousands of dollars or pounds to invest in the forex market. It is also not necessary to use leverage on your investments this is especially dangerous. There are plenty of spread betting platforms that now let you trade at as little a...

How to Trade the Forex Markets

Sat, 14 Aug 2010 02:36:58 -0500

So more and more commentators are calling for a split of some sort in the Eurozone but their cries will almost certainly fall on deaf ears. At least for now. The long term prospect for the Eurozone currency must remain doubtful given that the markets do not like uncertainty. For now though, the Euro is more than holding its own against the Dollar. The US currency continues to give up ground to the single currency.The recent downgrading of Portugal seems to have been the trigger for further buying of the Euro. It is almost a case of we-know-the-worst-and-we-can-now-move-on.According to Simon Denham of FinancialSpreads.com, "It looks like we are still in a possible bull-bounce in a bear-market but the probabilities of that are moving further and further away from the US currency. Having said that, the US economy seems to be recovering faster than the European economy. If so, we could speculate on interest rates moving higher in America before they move higher in Europe. Na...

The Mechanics of Stop Losses and Trailing Stops

Fri, 13 Aug 2010 02:30:07 -0500

What are Stop-Losses?Due to the volatility of some markets, a stop-loss is recommended for many types of spreadbets. This is a level at which the bet will be automatically closed if the market moves against you. Often these levels may be subject to some 'slippage' if the market moves particularly quickly, and it is not possible for the spread-betting company to close the position in the market. Most companies now offer guaranteed stop-losses, which are guaranteed to close at a certain level. However they usually charge an extra point of two of spread for the priviledge. This effectively transfers sme of the risk of fast-moving markets to the company.What are Trailing Stops?A trailing stop is a moving stop that follows the price of an instrument, ensuring that any sudden movemen...

Information on Financial Spread Betting

Thu, 12 Aug 2010 00:51:20 -0500

Have you ever contemplated using financial spread betting as an alternative to purchasing shares? There are many fine reasons why you should think about this option. This form of investing presents one of the simplest ways to wager on downward moving markets. When you are spread betting, you are not buying shares, what you really are doing is betting on which way you believe your selected market will move either up or down.More than likely should you be a new comer to this type of market, the term 'betting' could have put you off somewhat. We will explain a bit, many of us hear the word betting and imagine a bookie whom gives you odds, and you would then place your wager, either you win according to the odds and the bet, or else you lose. With spread betting, you are betting against another person that has the opposite opinion as you. For every winner there is a loser.To make a spread bet, one must place it by means of a spread-bet dealer. This is actually not like a 'bo...

Trading the Stock Markets and Reading the Money Supply Data

Tue, 10 Aug 2010 02:32:05 -0500

So we have seen the M money supply numbers come out from the UK Treasury and the numbers are broadly steady but limited. This state of affairs is not good enough for the UK, or for any other country. If the money supply is falling or just low-and-steady then growth prospects must be limited.If you are trading but less familiar with the money supply numbers, the 'M' is classed as "the cash outside banks ie in circulation with the public and non-banking firms private sector building society and retail bank deposits private-sector building society and wholesale banking deposits as well as certificate-of-deposits".The M is generally discussed rather than the M which is classed as "cash outside the Bank of England and Banks' operational deposits with Bank of England". The different definitions of money supply are designed to reflect the differing stores of money. M numbers are often quoted because they represent the most illiquid measure of money supply.So the n...

Benefits of Forex Trading - Still lost with the terms?

Mon, 09 Aug 2010 04:33:04 -0500

The foreign exchange more popularly known as forex trading is the act of pitting currencies of different countries in the markets. This is done through a broker. The trader will deal with a broker or a market maker. If you are new in this type of trade, you may get overwhelmed with the different terms, especially when it comes to the currencies. Do not despair. As you get the hang of trading this way, you will also be able to put meaning behind the complex terms.The Advantages of Trading in ForexNatalia Osorio Editor of the "Best Forex Trading" website -- http:www.BestForexTradingUsa.com -- pointed out; "'As a novice, you may get lost with the terminologies being used by the experts. But you are not expected to know all that at this point. Do not drop the idea of this type of trade just because of the words that you cannot understand. To present the brighter side, here are some of the benefits that y...

My Winning Stock Market System: Taking Advantage of Stock Market Trading Opportunities

Sun, 08 Aug 2010 00:55:56 -0500

I've sadly been missing some stock market spreadbetting opportunities lately as I was on holiday, the prevalent trading conditions are ideal for my type of trading. The kind of volatility we have been seeing lately is what convinced me to switch to intraday trading.Why Trade Intraday?I just love the freedom it gives me. No more worries if I see the Dow Jones close heavily down or we get bad economic news; I just trade what I see and the advantages to me far outweigh the disadvantages although I trust it mostly depends on the individual.Some traders are experts as positioning their portfolios but this is an area I always had a big weakness in, probably because all my decisions in the past were taken on a fundamental level. Intraday trading really suits my personality; I love to trade aggressively although I don't do this until I've setup a solid base in my accountMy Perf...

Stock Markets Looking Resistant to an Immediate Collapse

Thu, 05 Aug 2010 00:38:00 -0500

Both market commentators and traders are concentrating on the recent data out of China and the US. The prognosis is less than positive. As Simon Denham of paddypowertrader recently remarked, "Whilst I am not an outright bear on the World economy this does not mean that fear driven investors will not push the markets further than common sense would suggest."US data is looking weaker however we must compare this to the slightly suspicious levels it was apparently being reported at for Q and Q . Virtually all data will compare poorly to that".The performance of the FTSE for Q is apparently its worst quarter since . That is something of a surprise as most would have thought that some periods of would be as bad or worse. Despite the falls, stock yields are looking increasingly attractive as US and European inflation fears decrease. Interest rate rises are looking unli...

Trading Stock Index Futures Using Spread Betting

Mon, 02 Aug 2010 04:39:01 -0500

Many people think that it is risky to trade stock index futures. Is this the case? Well, it can be, if you don't educate yourself first, but if you can put some of your portfolio aside for this type of trading, the advantages really do far outweigh any disadvantages. Stock index futures trading is simply the buying or selling of an instrument which gains in value or loses value in the same way as the underlying index. Unlike buying the whole index, however, a future has a specified 'maturity date' when you are effectively closed out automatically. Other advantages include:Leverage.Gaining exposure to an underlying index as a whole. This can be used to gear up a long term exposure why put into a tracker fund each month, when you can simply buy a mini-sized Dow spreadbet contract with margin, giving you a total value of ,?.Hedging your regular portfolio. ...

How to Trade Gold After the Metal Hits a Record High

Sun, 01 Aug 2010 01:19:34 -0500

Looking at the gold market, the metal seems to have run out of friends. Not so long ago gold achieved its record high of per troy ounce. However, that level may prove to be the high for now.The problem is that Countries across the world are now moving into fiscal contraction. Whilst there are obviously a lot more DollarsYenPounds, and even Euros, around these days this has to be equated with the fact that gold has now almost quintupled since the UK mistakenly sold off half of their gold reserves in .If you look a little deeper into the gold market though it appears that every defunct gold mine on the planet has been reopened and the flow of bullion is increasing well beyond retail demand. Perhaps the current levels of gold production are purely fulfilling investor demand.If you are looking to trade the commodities like gold then bear in mind that there are downsides to all forms of investing. When I trade on a short term basis I usually use a financial

World Financial Markets Boosted by Chinese Monetary Policy

Fri, 30 Jul 2010 04:26:37 -0500

The Chinese have recently announced that they would ease their currency peg to the US Dollar. The immediate reaction in the world markets was positive. If the Chinese Renminbi was allowed to ease then this would reduce Chinese exports and increase imports. That should help the many key world economies.The news was also been taken positively in the forex spread trading markets. South-east Asian currencies appreciated accordingly. Majors like the Japanese Yen and Australian Dollar also benefited.Looking at the UK Stock Market, it looks like investors are speculating that the FTSE will return to the mark sooner rather than later.The FTSE seems to be oscillating around this median level, occasionally attempting a move to the upside around and likewise to the downside. However neither direction appears to have much follow-through. At the moment, those trading CFDs are reading this situation as glass-half-full and are putting pressure on the market to r...

But doesn't Spread Betting come with 'Ownership Costs'?

Mon, 26 Jul 2010 10:15:40 -0500

But doesn't spread betting come with 'owning costs' i.e. financing costs of the asset you're invested in?Commission, stamp duty and capital gains tax are all 'owning costs' of shares. With CFDs you do pay the market 'offer' price, but you pay commission and capital gains tax and an interest rate holding cost for being long which if often calculated when you close the deal. With spread betting on shares , yes you pay 'the spread'..... but if you look at it, the extra spread is almost exactly the same as you would pay for your CFD commission...and then you have the advantage of no tax. Indeed, the spread is wider on a longer 'contract', but this reflects the cost to the spread betting company of covering their position with you, versus the market. To say you can't make money out of spread bets is garbage, it's just an alternative vehicle for exposure to the market.... you seem to be getting a bi...

Speculating on the Gold Futures Markets

Sun, 25 Jul 2010 08:17:50 -0500

The price of Gold looks to be benefiting from all the doom and gloom in the headlines and the bulls will be hoping for a return to the , area soon. If this happens then naturally the bulls will want to see if there is enough momentum to take the precious metal to fresh new record highs.Nevertheless anyone speculating on the gold market to go up should remain wary of the sort of corrections that can be had to the downside. The last correction was a price retracement of ..Looking at the downside, the bears will be hoping for a break of the current levels. Although even if a break is achieved there is price support at ,, and also at , itself.Taking a step back from the day trading market and looking at the underlying trend, the precious metal has continued to be a favourite for investors around the world, particularly with Exchange Traded Funds buying more and more bullion. As stocks in the US and Europe have remained volatile, gold has retained i...

Spread Betting On Financial Markets during the World Cup

Sat, 24 Jul 2010 10:14:13 -0500

The problem with trading shares around the World Cup is that much of the positive effect of the tournament will already be priced into the shares. Also if England perform poorly, or if they are just plain unlucky, then some of the more obvious buys become sells.Having said that, with Financial Spreads you can speculate on stock markets and shares that are listed in some of the more consistent countries.For example, looking at German shares an investor could speculate on the Adidas share price to increase. And there won't be much getting away from Adidas this summer. They sponsor both Germany and France, they are official FIFA partners, they sponsor players like Lionel Messi and David Villa. They even supply the match balls. It is also possible to spread bet on other European shares such as Carlsberg, however, the Danes are not the sponsors. In contras...

Review of CMC Markets Financial Spread Betting Platform

Fri, 23 Jul 2010 09:40:51 -0500

CMC Markets , or as it was known then, Currency Management Corporation, was founded in , and was one of the first companies to provide trading over the internet. It branched out from the currency market in when it started offering CFDs, and in when it added spread betting, and these two now make up the bulk of its business. It operates in fifteen countries, in Europe, Asia, Australasia and North America.It offers two trading platforms, MarketMaker Web and MarketMaker Desktop, and is still one of the largest providers, although its position has been challenged. It offers a training course for new traders, and ongoing education with webinars and seminars. As you would expect with a long established company, the facilities offered are extensive and the range of products in spread betting comprehensive, including commodities, interest rates, sectors, indices, currencies and th...

Review of Spreadex Financial Spread Betting Offering

Thu, 22 Jul 2010 12:48:50 -0500

Spreadex is a spread betting company that was founded just over ten years ago, in . Sports betting is featured as much as financial spread betting, and the guiding principle for the operation is that spread betting should be user-friendly. Over of the UK's spread betters apparently agree that this has been achieved and use Spreadex by choice.In the company provided online sports betting, and a year later followed up with online financial trading. It still provides excellent telephone trading. It is registered with and regulated by the Financial Service Authority FSA. The quoted spreads are not the most competitive, but the margin requirements are good.Spreadex is based out of St Albans, unlike the majority of UK companies which operate in the financial hub, London. This doesn't affect their service, however, and most traders speak well of the company. Spreadex offe...