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| Spread betting targets ahead of Tuesday's London opening |
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| Written by Will Peters |
| Monday, 25 April 2011 10:11 |
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It's a holiday on the London markets, this should give spread betting traders a good opportunity to set up some trades. Delta Index, the spread betting company, has this morning suggested two spread betting targets ahead of the Tuesday open in London. Ferrexpo has been called higher after the formation of a bullish MACD crossover following a few good days trade. Delta have called a Buy at 480, with a stop suggested at 430 and an initial target share price suggested at 579. The FTSE 100 itself is also seen in a bullish pattern. A buy at 6026 has been called with a stop at 5959. An initial take profit target at 6157 has been suggested. Looking ahead to tomorrow's spread betting session we note that a lot of key market driving news will come out of Japan. Japan's largest companies are likely to paint a bleak picture for this year's profits when they start announcing earnings this week, if they offer any guidance at all. More than a month after Japan's devastating earthquake and tsunami on March 11, firms are still struggling with unraveled supply chains and sluggish consumer demand, making predicting future profits difficult if not impossible. Investors in Japan, used to companies providing guidance for a full year ahead, will be forced to rely increasingly on the number crunching of equity analysts, who themselves are struggling to form a clear picture of future demand. "Earnings season is here and we want to focus on outlooks for the current year, but it may be only a minority of companies that can provide one," Daiwa Securities Group chief executive Takashi Hibino told Reuters in a recent interview, predicting the uncertainty would last through the summer. Among blue-chip firms announcing earnings this week for the business year ended in March are video game giant Nintendo on Monday and Honda Motor on Thursday. |
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.



