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| FTSE 100 gains being capped by banks: Testing 5500 |
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| Written by Will Peters | |
| Friday, 10 September 2010 09:36 | |
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Spread betting firm Capital Spreads comments on the state of the FTSE 100 this morning. A lackluster performance by the US markets overnight has left the FTSE 100 in a holding pattern this morning. Bulls have been hampered by the banking sector which is showing a reluctance to push on from yesterday's gains. Simon Denham at spread betting providers Capital Spreads gives the following verdict into the FTSE 100: "We are a little lower so far this morning but only by a smidgen as the concerns over European banks and threats of double dip are being swept under the carpet. "The bulls continue to attempt to drive us higher and the FTSE 100 is testing 5500 having been dipping in and out of positive territory. "Despite the bulls’ best efforts, gains are being capped by the banks with weakness for European banks in particular as they fear that Deutsche Bank needs go cap in hand to investors. "This would be no bad thing as there should be plenty of appetite from the market should the go ahead with a fund raising, but as long as rumours circulate their share price will remain under pressure until the rumours are either substantiated or disproved. "As mentioned yesterday the FTSE is leading the way higher meanwhile other major benchmarks, namely the Dax and the Dow, are lagging having not breached their July highs yet. "Equity markets seem to be so nearly picking themselves out of the gutter, but sentiment is holding them back for now and the recent highs for the Dow do look to be a bridge too far for now." |
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| Last Updated on Friday, 10 September 2010 09:38 |
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Spread betting at a glance
- Spread betting is a financial product that allows retail and professional investors access to the widest possible number and types of exchange traded instruments.
- The spread betting company that you trade through is the market maker, the trader does not actually take ownership of any underlying product. Hence, most jurisdictions do not charge stamp duty on any gains.
- The notion that you don't actually own the product ensures spread betting platforms are able to almost instantaneously execute orders on behalf of their client.
- Spread betting is a leverage product, your money is able to realise you impressive gains as your earnings come in multiples of the actual change in the underlying product that you are trading.
- This is of course where spread betting can also go spectacularly wrong. Losses can be huge, therefore we advise those that are spread betting, or are looking to go into spread betting, to enter each trade with a well thought out strategy. This also means setting a pre-determined stop loss so that losses are cut at a manageable level.
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