FTSE 100 Spread Betting
Financial betting has become very popular as it is very lucrative and punters find their money to gain faster than any investment. Other than returning more profits, there’s also that liberty to bet on thousands of markets all over the world. One of the most popular indices that people choose bet on is London’s top 100 companies on the stock exchange. The companies belonging to FTSE 100 spread betting have the highest market capitalisation in the UK stock market and they’re also the most widely used indices and gauge of business prosperity. Those involved in financial betting use this as a great strategy to rollover their bets easily.
How Is It Done?
You need to be familiar with making financial bets, which is not as complicated as understanding and making investments. Sure, you need to have knowledge on the basic movement of companies to ensure the stakes that you will be putting will be reaping you with loads of profits. With FTSE 100 spread betting, you will be placing your bets on the direction where the price of its 100 top companies will be moving towards. Like your regular financial bets, it also has buy and sell price options wherein the sell price will always be lower than the buy price.
Do You Need To Be Familiar With Market Fluctuations?
So basically, you will need that knowledge on the financial movements in the stock market to be able to predict the fluctuations correctly. You can easily make profits when the trading falls below or above your spread. The spread is actually the difference between the price where you buy at and the price that you sell at. If you think that the FTSE will be rising, you can choose to buy and when you predict that it’s going to fall, you choose to bet on sell. Your winnings will be based on the number of points you fall below or above the spread.
How Do You Profit From It?
Bets, usually costing £1, £5, or £10, are placed per point and these points are essential in telling how much money you win or lose. So, if you bet £10 per point on a rising market and the market indeed moves up, you get to multiply that £10 by the number of points, or the difference of the actual value from the sell price. So, if you predict a rise of about 50 points from the actual value in the market, you will be earning £500 in profits. That’s a lot of money considering you had invested a minimal amount only.
The Risks of the Volatile Top 100 Market
But fluctuations in the daily FTSE can be very unpredictable and even volatile especially during the opening of the market for the day. That’s why when FTSE 100 spread betting, you need to be quick in making sound choices. There’s also the stop losses option, which you can use to your advantage especially when you have bet on the market to rise, after seeing the initial rise during the market’s opening, but it goes to the opposite direction towards the end of the day. You can also take half the profits in your position and continue to use the other half in betting. If things still don’t work out right, use the breakeven stop to avoid losing too much money.