Indices Spread Betting
Among the most popular and most common markets in the world of financial spread betting are indices. This is due to the fact that these indices are representations of the value of some of the world’s biggest companies. If you happen to be someone who is interested in getting into Indices Spread Betting, then there are a number of things that you should understand.
Spread betting on some stock market indices will allow an investor to go short or long. This will usually require some research and once you are done and you think that the companies’ combined values will go down, and then you can bet on the index to decrease. The same mechanism applies if you wish to place a bet that it will go up. However, indices spread betting is a form of trading that is leveraged. This simply means that you will have to risk a lot. You should be aware of all of its advantages and disadvantages before you place any trades or bets. You also need to understand how it works, the entire betting process, some platforms where traders go, the most preferred markets and the prices.
Most Popular Stock Market Indices
You will be able to find at least 6 of the most preferred markets that are being traded in this kind of betting. Some of these are the FTSE100, German DAX 30,US S& P500, Japanese Nikkei 225 and the French CAC 40. The FTSE100 is the share index that shows the significant movements of United Kingdom’s 100 biggest companies while the German DAX 30 post the top 30 listed companies based on their volume of order book and market capitalisation.
One of the leading instruments or markets is the Dow Jones and it shows the performance and movements of the United States’ 30 biggest stocks. This is often referred to as the Wall Street of the spread betting world. An index that basically describes the United States’ wide equity market by checking the actions of the top 500 stocks is the US S&P 500.
The Japanese Nikkei 225 shows the price-weighted average of Tokyo exchange’s 225 biggest stocks while the French CAC 40 shows the 40 biggest listed companies in France’s largest stock exchange which is called the Euronext Paris.
Betting on Indices
Another important factor that you should know about this kind of betting is the mechanics or the process. Basically, it is kind of similar to any type of financial market. This is due to the fact that a person can spread on the value of the indices in the future years. It is just like placing a bet whether a certain price of an index will increase or decrease.
Apart from considering the popular markets and the mechanics, you also need to consider the available platforms. You will actually find a number of options for you to choose from. The most preferred platforms are the CMC market, Capitol Spreads and Financial Spreads.
If you really want to get into indices spread betting, you should really do some research. Researching will help you make decisions that you will not regret in the future.