Spread Betting on Stock Exchange Indices

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If you begin spread betting with such a company as Cantor Index, you will be presented with hundreds of markets. The most popular are stock exchange indices. The spread betting company, ETX Capital, estimates that 50 percent of its trading is in indices. You can find out more about Cantor by clicking here.
Joshua Raymond, a market strategist at the spread betting provider, City Index, is often quoted as saying indices are popular because most traders are familiar with them and what causes them to move. Indices are extremely closely associated with the nation’s economy, of which your spread betting strategy must take account. Guaranteed stop losses are more likely on the more popular markets. Betting on indices is safer than betting on individual company stocks.
The FTSE 100, informally known as the Footsie, is an index of the highest 100 stocks in the United Kingdom. With London being the financial centre of Europe, it is the most significant index in the continent. It is also the least volatile index around, making it attractive to inexperienced traders. The FTSE 100 represents about 80 percent of the market capital of the London Stock Exchange. All the companies are PLCs – Public Limited Companies. The FTSE 100 is open from 08:00 to 16:30, GMT.
The Wall Street Index, popularly known as the Dow Jones Index, is based upon 30 large, publicly-owned companies. In contrast to others, the 30 companies featured in the index are unchanging, which would affect your spread betting strategy. It is open from 14:30 to 21:00 GMT.
The German DAX 30 measures the performance of the 30 largest companies in the country in terms of market capitalisation and book volume. The companies included are decided at a quarterly review. This market is open from 08:00 to 14:30, GMT.
The 40 companies included in France’s CAC 40 index are again decided at a quarterly review based on the prior year’s performance. It is open from 07:00 to 17:15, GMT.
Japan’s Nikkei 225 Stock Average lists the 225 companies with the most market capitalisation and liquidity. The companies to be included are named every September by an independent committee. Its value is calculated every day by the Nihon Keizai Shimbun newspaper. It contains some of the most well-known companies in the world, such as Sony, Toyota, Honda and Toshiba. It fell by more than 10 percent on March 15, 2011, the second working day after the T?hoku earthquake and tsunami. It is open from midnight to 02:30 and 03:30 to 06:00.
The Australia 200 index is also popular, listing the 200 largest companies in the country. It is open from 23:00 to 05:00, GMT.
Some companies offer one point spreads on these markets, although the spread is generally larger out of hours. After lunch, profit takers manifest themselves: if you buy in the morning, local time, you will likely pay too much. Indices have key psychological levels. The FTSE 100 has a major support level of 4,500, which will trigger many stop loss orders if it is breached, causing abnormal volatility.

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