Compare Spread Betting Companies
| The morning spread betting call |
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| Written by Will Peters |
| Tuesday, 26 April 2011 15:23 |
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Spread betting market news and views. "The FTSE 100 is called to open lower this morning after shares retreated in Asia overnight. This fall was on the back of lacklustre earnings results coming out of Japan with Nintendo announcing a 52% fall in profit and Nidec providing a negative outlook for the remainder of the year. With little in the way of economic data due out today investors will be focusing on the back end of the week which will see an increase in both company announcements and economic data releases," says a morning note out from SVS Securities. Looking at the morning corporate action we see that Pearson Acquisition announced saying that it will buy Schoolnet for $230m in cash which will increase the company's presence in digital learning. The company said that it will be broadly neutral to earnings per share in 2011, which includes integration costs, and will enhance adjusted EPS and return on invested capital in 2012. The agreement is subject to a Hart-Scott-Rodino review. Most spread betting companies had also called the FTSE 100 higher. "No big fireworks today, with the FTSE +3 at 6020 led by ARM Holdings, Autonomy and International Consolidated Airline Group. Miners are lagging on dropping commodity prices after yesterday's rally, with Randgold Resources -2.07% at 5195. UK equities beyond the natural resources sectors look range-bound for the time being though as there is little macroeconomic data of significance and only 3 days of trading this week," says a morning note from Christopher Purdy, market analyst at spread betting company Spreadex. |
Spread Betting Lessons - Cut out the emotion!
Oh, and also a lesson why the Stop Loss is your Friend !
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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.
- This website is here to offer more insight into this fascinating trading instrument.



