Types of spread bets
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by Leon Hughes on 18th October, 2016 and updated 18th October, 2016 4:20pm
At Spread Betting we see it as our responsibility to educate new spread betters, allowing those just starting out to begin of a positive note. With a variety of trading platforms, promotions and spread betting variations available we are here to help, talking you through the terminology many sites use. City Index, one of the biggest names in spread betting, work with 4 terms to categorise spread betting, creating a range of different markets in order to maximise both trading potential.
Day Spread Bet Trader
These type of traders work with spread bets that last between minutes and hours, focusing on small market moves. City Index explains the features of the category as:
- Trades expire end of day
- No rollover available
- No overnight risk
- Trades can be closed before expiry
- Exclusively available to City Index clients only
- Available to top 20 UK equity markets only
- 20% tighter spreads than regular markets
- 50% lower margins than regular markets
Short-Term Spread Bet Trader
This term describes those that trade few positions through the week, with trades lasting between 24 hours and a week. Focusing on market moves of between 1-3% these betters centre moves on technical levels and market news.
Medium-Term Spread Bet Trader
A medium-term spread bet trader takes just a few positions throughout the course of the month, with trades working with 2-4 week periods. Seeking profit moves of up to 10% this is a little more of a risky approach, with such based usually propped up by fundamental analysis and market research.
Long-Term Spread Bet Trader
These types of betters work on a 3-month basis, taking a few positions throughout the quarter. With trades typically lasting between one and two quarters they look for 10% or more from market moves, drawing on technical levels and fundamental analysis when building spread bets.
Start spread betting today
Whether you are a day spread better or work on more of a long term basis, we at Spread Betting have a product to suit your betting needs. Sign up with any of our partners and start your spread betting journey today.
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