LONDON, June 19, 2012 /PRNewswire/ --

How will you spread bet European indices following the victory of Greece's New Democratic Party? We show you the way in our Spread Betting Guide below.

Spread Betting Guide to Trading European Indices

In the guide below, we look at how you can spread bet European indices - such as the FTSE 100, CAC 40 and DAX 30 - with financial spread betting provider City Index.

Our spread betting guide covers the following areas:

• Research & Analysis: Covering the latest news affecting our spread betting market
• Plan & Strategise: Use this research to create a spread betting strategy
• Trade: We show you how you can trade European indices with a spread betting account

Research & Analysis: Investor Confidence Boosted by Greek Victory

On Sunday 17 June 2012, after weeks of uncertainty, Greece's New Democratic Party was elected.

In early morning trading the following day (Monday 18 June), European markets - which had been under increasing pressure in recent weeks - were offered some relief as investor confidence was boosted by the elected party's eagerness to remain a part of the eurozone.

As of 9:57 BST, gains were seen briefly across the board, with European indices such as the French CAC 40 up 0.52% and German DAX 30 rising 0.80%.

However, City Index Market Analyst Fiona Cincotta warned investors that "difficult times are going to continue for the eurozone".

Plan & Strategise: Spread Betting the DAX 30

Having fully researched and analysed the German DAX 30, we have found that following the Greek election results and subsequent victory of the New Democratic Party - supporters of Greece as part of the eurozone - you can begin to plan your spread betting strategy.

Part of your plan will be to implement risk management tools, such as stop loss orders - with the aim of limiting your losses.

In this example, let's say you plan to go long and buy the DAX 30market - shown as the Germany 30 DFT within the City Index spread betting platform - for a stake of £10 per point.

Using a stop loss order, you plan to limit your losses to £80 maximum and therefore place your stop loss 8 point below the price at which you buy.

Trade: Go Long on the DAX 30

Now that you have researched the factors affecting your chosen market and used this information to plan your trade and manage your risk - it is time to place a trade.

As mentioned above, in this example you plan to go long and buy the Germany 30 DFT based on positive news out of Greece that is affecting European indices positively.

By going long, if the market moves in your favour and rises - you will profit for every point it goes up.

However, if you are wrong and the market moves against you and falls - you will incur a loss for every point it goes down.

This is why it is imperative that you implement risk management tools when spread betting the global financial markets.

Start Financial Spread Betting

To start spread betting across a range of trading platforms - including mobile - you can apply for a spread betting account with City Index through their website: http:http://www.cityindex.co.uk

Read More Spread Betting Tips

If you found this article helpful, you may want to read more just like this. You can access a range of free spread betting tips, guides and articles through the City Index website.

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. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.

SOURCE City Index