How a Spread Betting Demo Account Can Help New Traders

LONDON, February 14, 2012 /PRNewswire/ --

Using a spread betting demo account is an ideal way to learn about the financial markets in real time with zero risk.

Spread betting provider, City Index, outlines the advantages and disadvantages of demo spread betting accounts and how traders can learn to become better spread bettors before committing to a live trading account.

What is Spread Betting?

Spread betting is a popular product for new traders because it offers an easy entry level into the financial market due to its low margin feature and high leverage.

Allowing traders to go both long and short on trades, spread bettors can profit from a market which falls as well as rises.

It is important for new traders to educate themselves and understand the risks that come with spread betting.

Using a spread betting demo account is an ideal way to do this.

Spread Betting Demo Account

With the ability to trade a wide range of markets - in real time - whilst viewing detailed market information, follow tick charts and place trades; a spread betting demo account also offers zero risk to new traders.

The Free Demo Trading Account from City Index is available for a two week period and enables traders to trade with a virtual cash balance of £2,500 with free and unlimited access to thousands of markets, including indices, shares, currencies, commodities and more.

The demo trading platform provides traders with a variety of trading tools to manage trades from entry orders to stop losses and limit orders.

Most importantly, a demo spread betting account enables traders with better understanding of how leverage magnifies both profits and losses; an essential part of risk management.

Summary

New traders are advised to regularly set aside time to check their positions and manage their spread betting demo account. This will allow them to achieve a greater, more realistic, understanding of spread betting.

Open a spread betting demo account: http://www.cityindex.co.uk/learn-to-trade/demo-account.aspx 

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

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, financial spread betting.