A Guide to Spread Betting's Most Popular Markets

LONDON, January 17, 2011 /PRNewswire/ -- Spread betting today encompasses almost every financial market imaginable. From the Dow Jones and crude oil to UK gilts and lean hogs, you can spread bet on practically anything with just a few clicks on your computer or mobile trading platform ( http://www.cityindex.co.uk/trading-platform/). Read on for an insight into three markets that prove popular within the financial spread betting community.

Indices

Indices, such as UK 100, Germany 30, Wall Street, Japan 225 and Australia 200, are the most widely-traded markets in spread betting. The reason for this could be trader familiarity with the products. As Joshua Raymond, Market Strategist at spread betting provider City Index states: "[City Index's] most popular traded markets are typically the FTSE 100 and Dow Jones. This is probably because most traders know what these markets are and what makes them move."

City Index offers 1 point spreads on the UK 100 (FTSE 100), Wall Street (Dow Jones), Germany 30 and France 40 during market hours, which makes them an even more attractive proposition to new traders. You can find out more about the 1 point spreads at http://www.cityindex.co.uk/1point-spreads/.

Currencies

Also known as the foreign exchange, forex and FX, currencies are another widely-traded spread betting market. City Index offers spreads on more than 50 currency pairs, including sterling, US dollar, yen, euro, Swiss franc, Canadian and Australian dollars. The company points towards GBP/USD, EUR/USD and USD/JPY as its most popular markets within the foreign exchange. Again, City Index offers competitive spreads on these frequently traded pairs, offering EUR/USD at just 2 points and GBP/USD at 3 points.

Commodities

The most popular commodities in spread betting are thought to be oil and gold. Many traders see oil as a good barometer for the condition of the overall global economy. This is based on the belief that when the economy is performing well, a greater amount of oil will be consumed, consequently pushing its price higher. In contrast, some believe gold to retain its value in times of economic instability, during which other currencies and commodities might lose value. City Index (http://www.cityindex.co.uk/) offers access to a wide range of commodities, including cocoa, coffee, sugar, wheat and pork bellies, as well as US and UK crude oil whose spreads start from 6 points.

Fundamentally, whichever market you choose to spread bet ( http://www.cityindex.co.uk/spread-betting/), knowledge is the one of the most important tools at your disposal. You have to understand the risks, understand how to manage them and understand your market. After all, as financial spread betting expert Mr Raymond points out, the best market to start with if you are new to spread betting is "quite simply, the market you know best."

Learn more about the spread betting markets at http://www.cityindex.co.uk/range-of-markets/.

Alternatively, you could try a free spread betting seminar, where you get the chance to spread bet on a simulated trading platform under the watch of a spread betting expert. See http://www.cityindex.co.uk/learn-to-trade/seminars.aspx for a list of upcoming workshops.

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.