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What markets can I use for spread betting?

Written by Trader Hideout Editor   
Sunday, 14 June 2009 14:17

Spread betting can be used in a wide number of markets and even for trading on things such as General Elections, but there are five main markets that a professional spread trader could use and usually a spread trader will specialise in a certain area of one of these. To make real money, you need to know your market inside out. Here is a short explanation of each:

•    Indices:  this is spread betting on one of the indexes such as the FTSE 100 or the Dow Jones. Each index is made up from a number of trading companies in a particular country or sector and there are plenty of opportunities for spread betting
•    Equities: these are single shares in a company so you might place a trade on a company such as BP or Microsoft. Most spread betting companies will accept trades on American or European companies giving plenty of opportunity
•    Currencies: this is fairly self-explanatory as you place your spread bet on the movements of different currencies
•    Commodities: this is spread betting on sectors such as metals, energy or even meats. So, if you decide to spread bet on gold for example, this is spread betting in the commodities market
•    Sectors: some spread betting companies will allow betting on sectors in the UK or American industries, so you could place a trade on the mining sector, for example

There is certainly no limit to finding opportunities for spread betting.

 

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