PRN: Spread Betting Guide to Trading Currencies for New Traders
Spread Betting Guide to Trading Currencies for New Traders
LONDON, April 16, 2012 /PRNewswire/ --
Traders choosing to spread bet currencies can benefit from greater leverage and the potential to trade and profit from small movements in the currency markets (forex).
The forex market, also known as foreign exchange, retail forex and FX; can provide attractive opportunities to traders, even during volatile market conditions.
Below, spread betting company City Index offers an insight into the world of spread betting currencies for new traders.
Spread Betting Forex
Traders looking to start spread betting with City Index can access a world of stocks, shares, equities and currencies for only a small percentage of the total value they wish to trade as an initial deposit.
In turn, this offers new traders looking to enter the forex market a level of exposure that they would otherwise not receive through more traditional trading methods, as well as access to over 50 major, minor and exotic currency pairs. However, it is important to understand that greater leverage can result in losses that exceed your initial deposit, making it important to recognize that when spread betting forex, prudent risk management be adopted as part of your trading strategy.
How to Spread Bet Currencies
One key to your trading success can be to create and follow a comprehensive trading strategy.
Before you start spread betting currency pairs, you must aim to limit your risk by outlining your personal profit goals, the level of loss you are willing to take on a trade, a risk management strategy and the way in which you will analyse your chosen currency pairs.
Outside of your risk management strategy - which will see you utilise various tools such as stop loss orders on your trades - the trading strategy itself will help protect you should emotions take hold during volatile market movements.
Remember, your strategy must be utilised across all City Index trading platforms - including online and mobile.
As mentioned above; your trading strategy should outline what form(s) of analysis you will use to familiarise yourself with your chosen currency pairs.
By familiarising yourself with both the technical and fundamental tools, you can analyse and gain knowledge of your chosen pair, prior to placing a trade.
Trading Tip: Keep on top of economic news and events, so you can analyse your markets and the subsequent factors that can determine their future price movements.
Financial Spread Betting provider City Index offers various trading tools across its professional platform; from stop loss orders, to live streaming financial news and free seminars and webinars; you are able to plan your best approach for when spread betting on currencies.
Learn more about spread betting on foreign exchange rates with City Index.
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.