spread betting

How to Learn Spread Betting for Free?

One of the key components to becoming a successful spread better is knowledge and in most cases this knowledge costs money. Whether you want to buy a book off of Amazon, take part in online training or study for a professional qualification, you will find that there is always expense. Online courses can actually cost thousands of pounds although many people consider this to be a worthwhile price to pay considering the huge sums of money you can win when spread betting.

I want to let you into a little secret. You don’t have to pay for the best training – it is available for free.

One of the leading spread betting companies, ETX Capital is currently running an incentive where its members get free access to some top notch training brought to you by one of the most successful online training companies on the web.

To gain access to this training, all you have to do is sign up for a free account with ETX that normally takes no longer than ten minutes. In some cases you might have to provide further details, if for example you fail the credit check that they will do. Don’t worry though; all you will be required to do is fax or scan across copies of your passport or driving license and some proof of address details.

Anyway, back to the training. There are literally thousand of pages of information for you to read to study day trading and each and every month you will be eligible to take part in an online seminar where some of the most successful traders share their tips and tricks.

So there you go, get yourself over to the ETX Capital website and register for an account. Once you have been accepted you will have all of this information available to you for free and you won’t have to spend thousands of pounds to learn the trade of trading!

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ETX Capital Review

If you are looking for a service that offers tight spreads, highly competitive new account offers, a quality trading team and all the other things you would associate with a top spread betting company, then look no further.

ETX Capital is a market leader for a reason. The company is owned by Monicor, a specialist financial investment firm that deals with a whole host of top businesses. ETX is one of its biggest ventures and it currently services tens of thousands of clients each and every month. Although there is much competition in the land of spread betting, customer retention is very high and we will now look into the reasons why.

Firstly, the give a free new account bet (well they call it a safety net). It basically entitles you to £250 back on any loss you make in the first month of trading. Of course, we all hope you will not be in a losing position but if that problem does arise, you will get up to £250 back. Ok this isn’t a reason for why customer retention is high but it really does help with getting new business on board.

One of the key reasons why people keep using ETX is due to its excellent training and seminar package that provides countless information on the subject of day trading. By studying this material you can go from a complete novice, to a knowledgeable bettor within no time. The training is provided by another source and if you were to pay cash for it, the training would set you back around £500.

Another reason why ETX capital keep its clients so happy is due to the competitive spreads it offers. There is no need for investors to look elsewhere because there really isn’t much money to be saved on the most traded markets. Spreads are obviously very important to someone, especially if they are looking to trade regularly over a prolonged period of time.

The trading system that ETX uses is also very good and offers level 2 access to charting that is very advanced and can help the more knowledgeable trader when choosing bets to place. Execution speed is very good and down time pretty much nonexistent. This ETX Capital review cannot be held responsible if you do have any problems though!

As you can see there is a whole host of reasons to be using ETX Capital review to place your trades and very little stopping you. Visit ETXcapital.com today to sign up for a new account.

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Leverage: What it is in the World of Trading?

Leverage is where you borrow money, usually from your broker, to increase your returns. Leverage is used across almost all asset classes including stocks, bonds, futures and foreign currency (Forex.) You choose the instrument you want to trade. The exchange or broker will set a cash amount that the trader must put up, called “margin.” That margin varies according to the asset class you are trading and specific contracts within each asset class. For example, with stocks the margin is usually 50%. This means that with a $5,000 account you can trade $10,000 worth of securities.

For commodity futures the margin is 15 to 1, meaning that you can buy 15 times your available cash. The most leveraged asset class is Forex. Here you have margins at 100:1 and 200:1. With $1,000 in your account and leverage of 200:1, you can trade $2,000,000 of currencies.

What draws traders to using margin is the lure of making big profits. However, you must understand that leverage is double- edged sword. You can make huge profits and also suffer devastating losses. Let’s use a gold futures contract as an example. Assume that the price of gold is trading at $1,290 per ounce. The Comex exchange where gold is traded has a margin requirement of $5,940. This contract is for 100 ounces of gold. Your account has $10,000 in cash and you decide to buy one gold contract. You put up $5,940 of your $10,000 and finance the remaining amount with your broker. In this case you are financing $123,060 (129,000 (100 oz.) minus your margin of $5940. Your gold contract specifies that each $1.00 change in the price equals $100. So, if gold moves up to $1,291 you’ve made $100, and vice versa if it moves down $1.00, you’ve lost $100. What you must realize and this is the key to leverage is that the price changes, NOT on your margin, but on the total value of the contract. It is not unusual for gold to move up or down by $30 per ounce in one day. What that means is that if you are long gold and the price falls by $30, you have lost $30,000. You originally had $10,000 in your account. Now you’ve lost $30,000. You now OWE the brokerage firm $20,000 by noon the next day. This example brings home the absolute need to place “sell stop” orders to prevent you from losing your home and possessions. In this case you can decide to risk $500 and place your stop loss order at $1,285. Stop loss orders are a way of trading the markets and limiting your downside risk. The opposite would be true if you decide to sell short the market. Here you want to protect yourself from a sharp rise in price. In the above example if you sold short one contract of gold at $1,290 per ounce and wanted to risk $500, you would place a “buy stop” at $1,295.

Options on stocks or futures contracts are another way to use leverage.

Assume that you can buy 100 shares of stock for $1,000. Instead you buy 10 options on that stock for the same $1,000. Now, instead of just making $100 for each $1.00 change in the stock price, you make 10 times that amount on your options. This of course is theory. In practice options have a time decay value and will expire worthless at the end of the option period. Successful options trading require the skill to know when to purchase or sell options to take advantage of the changes in premium. Another use of options is buying or selling them against a long or short stock position. Since they usually expire worthless, a trader can use this strategy to make added profits.

You must always weigh the risks when using leverage. You must also have a successful trading plan otherwise your account will quickly be decimated.

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Introduction to Binary Options Trading

Binary options trading is one of the best ways to invest in the stock market. Here, there’s no need for an investor to buy assets, but has to guess directions it could take. Binary options is an effective and easy way to invest in the stocks and make some extra income, sometimes within 60 minutes!

In binary options trading, there can be only two types of results: either the asset invested in will rise in value, or will drop in value. For instance, a trader can invest 200 dollars in an asset and can speculate that its stock will rise within a week. If the stock rises within that time frame, the investor will make profit, but if the stock falls, the investor runs at a loss.

How it’s done?

In order to make a binary option trade, you should first choose an asset. This could be an index, commodity, foreign exchange, or a stock. After this, you will have to choose a time frame (expiry time) for their prediction. This could be anything from an hour to a week, or even one month. You will then have to choose the direction in which you feel the asset’s value will move. If you place a call (up) option and the price indeed goes up, you will end up making a profit, and if you place a put (down) option and the price moves downwards, once again you will make a profit.

Benefits

Even though there is a huge risk when dabbling in the financial markets, but there is a controlled risk in binary options trading. In binary options trading, the profits and losses are known to the trader upfront, which helps them in strategizing where to invest their money, thus lowering the risk. Binary options trading gives you a much better chance to make profits because profits in this trade depend on whether the value of assets is going up or moving down, rather than its price. Aside from being easy to learn ways to trade in binary options, the trading can be done online right from the comforts of your home or office.

It’s unique!

Binary options trading is unique in a way that while regular trading options have a monthly or quarterly time frames, binary options come with a much shorter time frame that may range between an hour and a month. This means you can make profit even within 60 minutes. It’s different from other trading options because with regular options, your profit or loss depends upon the difference between the price of the stock and the option at the expiration of the time frame, while in binary options trading both these prices are set much before you invest minimizing the risk for a loss.

Experience is crucial when using binary options trading. You should thoroughly study and understand various aspects of this trading to ensure profits and to save yourself from the losses. You should do as much research as possible on this trading, the strategies, the influences and the reliability of the broker (if involved). You should begin by opening your account, which you can do online with many brokers. Next you should choose the assets to trade upon. With wide range of assets available within the binary options trading platform, you should choose the most suitable option. Brokering agent can be of help as he can help you by providing lots of binary options to choose from.

All in all, binary options trading is a simple and effective way to make profit from the diverse financial markets. Although there is a risk, but it’s not that large to put a big hole in your pocket. Best of all, there’s no need to have an experience or expansive knowledge of trading, which can be easily learnt when trading, so to speak.

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The Stock Market-Basics and How to Invest?

Stocks are a great investment tool. This is one of the few financial instruments, which is capable of fetching high returns. Unfortunately, many people have very vague idea about it and end up losing money rather than gaining. With a little bit of basic knowledge, it is possible to gain a handsome return on investment.

If you are also wondering how to go about investing in a stock market, you are at the right place. In this article, we will give you a basic idea about how stock market works.

What is a Stock Market?

A stock market is a place where shares are traded. When a company needs money to scale up, it has two options; it can either borrow money from a bank or it can sell a part of the company to the public.

The latter is known as IPO. The advantage with IPO is that companies need not pay interest as too many people own tiny parts of the company. If the company, however, goes bankrupt, it has to sell its assets in order to pay its investors who have invested in the form of stock. So, in simple terms, a stock market is a place where bodies such as the London Stock Exchange (LSE) trade the share of a particular company.

How to Invest?

You need to have a stock account with any agency or a broker to invest in a stock. Once you get registered, your broker does all the transaction for you and charges you a small percentage on each transaction, irrespective of whether you gain or lose money.

You can purchase any stock of any company from the share market at market price. Alternately, you can purchase stock from the company during the IPO.

How does the Stock Market Work?

The market is too complex to define how it works. There are too many theories on questions such as why stock fluctuations happen, why share markets crash and why it goes up? But, the basic theory of a stock going up and coming down is related to economics.

It is the basic principle of demand and supply. If the demand for a stock is high, the price goes up and if the demand is low, price comes down. The demand of a stock depends on various factors such as company performance, earning, dividends, and public sentiments, among others.

What You need to Do Before Investing?

First things first, investing in a stock has its risk. It is never a good idea to invest all your fund in equities, for there is no guarantee of return.

That being said, if you are interested in investing a portion of your fund in stock, you need to ensure that you know the basics of share market. Certain jargons should be at the back of your hand in order to complete your research.

The basic knowledge of stocks is readily available on the internet and all it requires is some time to know about them. Once you are confident about the basics, it’s time to research on a particular stock.

How to Research?

While there is no hard and fast rule to track a stock, you need to ensure that you have certain things covered. Factors such as dividend, performance of the stock in the past year, company management and their stability, P/E ratio, and performance in the last quarter needs to be looked at.

Who is it For?

Stocks are for people who have a high-risk appetite. If you are not too sure about equities, don’t take chances by investing in stocks that have not fetched high returns and is unpredictable. For a beginner, it is a good idea to stick to the big guns, even though the return may not be that great.

Recession in Cyprus Not as Bad as Expected

The recession in Cyprus over the course of last few years has been a concern for bodies such as the IMF and the EU. However, compared to the past few years, the scenario has drastically improved and it is expected that the island will make a financial recovery in due time. That being said, the present year is going to be extremely crucial for the island whose main source of recovery at the moment seems to be dependent on private consumption.

The History

In March 2013, the smallest island of the EU got into a financial emergency after its bank failed due to investments in risky assets. It took a collective investment of £8.1 billion from the EU to get the island functioning as a stable state. That being said, the former has been continuously monitoring the recovery of the island.

The Present Scenario

After a recent round of meetings, the international lenders concluded that Cyprus has been slow, but has made a solid recovery. Its return to international market is now just a matter of time. The island has made progress in all sectors of the economy and the outlook is extremely positive. The recent depth came down to 4.2 as compared to the earlier projection of 4.8. The finance minister in a recent interview commented that this is a very good sign for the island.

Concerns

Although the future recovery has been given a green signal by the authority, it is likely to be stalled thanks to high unemployment and less investment in the services sector compared to a decade earlier. Add to it the poor performance of the banks due to a large chunk of non-performing assets. There are other factors, which threaten to lower the domestic consumption.

Why a Sustained Recovery is Necessary?

Cyprus outperformed the lenders expectation by 0.4 percentage points. This is going to be crucial to get the next round of funding from the EU and the IMF. A new aid of £686 million can be well under its way if the growth of recovery keeps the same pace. A new influx of such amount will surely help the Cyprus economy to revive faster.

An Early Return

Analysts share a mixed view about the possibility of Cyprus returning to the financial market by 2015. While it is still possible, the large amount of deficit faced by the leading banks still possess a threat to the country. If however, the island does make it to the financial market by 2015, it will have enough cushions to perform, for it is completely funded by the European Union.

The Cautious Approach

In order to ensure that the island does not back track from its current path of recovery, the Cyprus union has taken a lot of steps. The inflation has been kept under control, which ensured that the prices do not sky rocket due to correction.

Banks have been instructed to be stricter while extending loans to the lenders. Getting a loan in Cyprus at today’s date is extremely difficult. The island is in talks with a lot of other European countries for investments in other streams other than financial aid. This has been done to ensure that the rate of employment goes up in the coming few quarters.

The Path Ahead

Whether or not the island can make an entry in the international market remains to be seen. A lot of factors are going to be associated with it. The biggest challenge for Cyprus however, will be to maintain the growth rate for two straight quarters, considering that the disposable income of its population is at an all time low.

All Eyes on the US Durable Goods as Calmness Prevails

The week has been disappointing so far for traders and investors across the UK and the US. Both the currencies of the respective countries are trading at a level, which is way below the expectations of the traders.

The European session saw both the currencies trading below 1.32. The Eurozone had no significant news to drive the market. As of now investors, are hoping that two key news items from the US could give a push the market. The first news being the CB Consumer Confidence report and the second one is Core Durable Goods Orders or CDGO.

As far as the US market is concerned, the data has shown solidarity, but analysts believe that the data to be released will have mixed impact on the market. It is expected that the CDGO will fall to 0.5% for last month. The speculation in the market stands that the CDGO will be at 7.4%.

(Check out Forex Bonus if you want to trade this currency pair).

However, other experts have predicted that the numbers can go higher. The reason of such explanation is the purchase of passenger aeroplanes. The number of the same has been significantly high in the last quarter.

Traders and investors might expect a strong thrust in the market for a short term. This, in turn, could affect the Dollar positively. The confidence of the consumer is at all time high and the CB Consumer Confidence is believed to support this fact.

The starting of the week has been extremely disappointing due to the news that arrived from Germany. The indicator reading was at its lowest in one year flat. The last reading of the indicator stood at 106.3. The German PMI indicated signs of weakness last week itself.

Being the best economy in the Eurozone, this is a sombre performance and indicates that the economy is continuously becoming weak with passing days. The Euro is dependent on the data of Germany in a lot of ways.

This currency will face difficulty if the German data do not beat expectations of the traders. The Euro will only lag behind the Dollar if German fails to impress the market with its economy.
The gathering of world financial leaders and central bankers last week was a key event. The Fed chair person, Janet Yellen, however, did not provide any solace to the market as a keynote speaker.

No indications were given of a hike in interest rate by the US Fed Chairperson. Time and again, she reminded that the job market scenario is still not up to the mark and that the employment numbers remain a priority and an essential component of a possible rate hike.

A major divergence between the two bodies namely, the Federal Reserve and the ECB has surfaced. The Federal Reserve is wrapping the QE and the ECB might have no option, but to give some stimulus to the market in its endeavour to cheer the Eurozone economy.

A lot is about to be decided in the next week when the two key reports from the US surfaces in the market.

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Euro Recovers a Tad from One Year Low

It was a heart break for traders in the market as the Euro went down to the lowest ever in almost a year. The primary cause of such a fall was due to an announcement made by the Finance Minister of Germany. The minister stated that the European Central Bank (ECB) is going to ease the monetary policy in the months to come.

The currency was performing satisfactorily at $1.3183. This is still 0.1% down compared to the previous days figure. The free fall of the market made the currency fall to $1.3151. Have a look at the website Options Trading for ideas on trading this currency pair.

The Finance Minister, Wolfgang Schaeuble took a strong stance at the press meet after the announcement. He said that the ECB chief’s comment has been over analysed when he mentioned that he would go to the extent of using every means available to fight inflation if the figure does not come down to a comfortable level.

Analysts believe that the ECB chief’s comment at the Jackson Hole was the first step towards applying the quantitative easing method. One top boss of a financial firm summed up Draghi’s speech as a right step towards turning the currency into the right direction. The ECB is trying to turn the currency more dovish, feels Adam Myers, Strategy Head, Credit Agricole.

The Euro stood its ground despite a negative morale of the German consumers for the first time in more than one year. Shoppers in Germany became concerned about international conflicts-Russia in particular. This is the first time, the Euro fell and could not hold its ground.

The Finance Minister was also involved in the dialogue exchange. The Minister addressed the policy makers that the growth forecast of Italy should be cut down immediately. It will help Italy fall in line with other Eurzone countries. Italy happens to be the third strongest financial economy in the Eurozone.

With dismal results all around, investors would be keenly looking forward to the inflation figure of the Eurozone. The policy meeting of ECB might also play some role to push the market. This is supposed to happen on 4 September 2014.

Last Wednesday saw the Euro touch its lowest point against the Australian Dollar. The same scenario was repeated when it is compared to the Canadian Dollar.

Kiwi Rises

New Zealand was a surprise package and moved as high as 0.5%. This is the highest rise in the last six months. The current figure against the US Dollar stands at $0.8377.

The rise of the Kiwi was backed by the dairy giant, Fonterra’s affirmation on its yearly forecast. The company also closed a deal with one of the giant companies of China, which will give them the access to the Chinese market.

The scene for the USA is all good for now. The confidence of the consumer is at its highest point ever in eight years. This is further supported by the biggest rise of the manufactured goods. Traders, however, still believe that the Dollar needs to consistently perform well for the FED reserve to hike interest rate.