Want to trade the markets in your spare time? Or perhaps you are brand new to the trading game. Whatever the case, when it comes to the stock market FTSE spread betting is an essential tool to master if you would like to make any kind of profit.
The FTSE 100 consists of the 100 largest financially successful listed companies in the United Kingdom according to market share. Such companies include Cadburys, Vodafone, BP and ICI. The way in which companies are listed on the FTSE 100 is according to market capitalization, which basically means how big or small the company is. This is calculated by taking the number of stocks in issue the company has and multiplying it by the current share price.
The FTSE 100 however is a market capped, weighted average and bigger companies will therefore have a larger impact than smaller listed ones.
In brief, in terms of FTSE spread betting, the FTSE is the most traded instrument due to the tight spread.
Most spread betters are based in the UK and are familiar with the fact that the daily rolling FTSE spread is only 1 point and can quickly move to 100 points in a short space of time.
As a novice trader, the FTSE spread betting is a great place to begin as you can track the market in news headlines, as it is a 24-hour market. In addition, you can spread bet from only £1 a point, so you do not need a lot of money to trade.
Since the FTSE value varies according to share value, the index is a good indicator on how well UK companies are currently performing.
FTSE spread betting is not complicated and simply requires a lot of common sense and a bit of analysis.