Spread Betting Guide to Trading Forex for New Traders

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April 4, 2012
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Spread Betting Guide to Trading Forex for New Traders

LONDON, April 4, 2012/PRNewswire/ --

    Offering multiple benefits to traders both new and experienced, foreign exchange is
one of the most traded financial markets; allowing spread bettors fixed forex spreads,
greater leverage and the potential for substantial gains from small movements in the
markets.

    In the below spread betting guide, we offer an insight into the world of spread
betting the forex market for those new to trading, with the aim of helping you to achieve
more profitable trading.

    Spread Betting Forex

    Spread betting with City Index [http://www.cityindex.co.uk ] offers traders an
affordable gateway into the world of stocks, shares, equities and currencies.

    Forex, also commonly referred to as foreign exchange, retail forex and FX; provides
attractive opportunities to traders, even during volatile market conditions.

    Spread betting forex requires an initial deposit which is only a small percentage of
the total value you wish to trade, offering new trading exposure to a wide range of
currency pairs.

    Strategy

    Your trading strategy should act as a comprehensive guide for you to follow when
spread betting currency pairs
[http://www.cityindex.co.uk/range-of-markets/currencies-spread-betting.aspx ].

    Prior to placing a trade, outlining your personal profit goals, maximum risk allowance
(how much you are willing to lose), risk management strategy and how you are going to
analyse your chosen markets, i.e. through technical or fundamental analysis, or both; your
trading risk will be reduced, as will the potential for losses.

    It is common for emotions to get the best of you, especially during volatile market
conditions, which can lead to impulse trading. A trading strategy, covering the above
areas, can significantly reduce your trading risk.

    Analysis

    As we mentioned above, part of your trading strategy needs to outline what form - or
forms - of analysis you will use to familiarise yourself with your chosen markets. Keep in
mind that when trading the forex market, you are trading a currency pair, i.e. two
markets.

    Analysis is imperative to your trading success; by familiarising yourself with both
the technical and fundamental tools, you can analyse and gain knowledge of your chosen
pair prior to placing a trade.

    For example, through technical analysis, you can analyse the historical price
movements of your markets in order to predict their future direction.

    In a similar way, by keeping on top of economic news and events, you can analyse your
markets and the subsequent factors that can determine their future price movements.

    Such preparation, based on analysis of price trends and financial news, will help you
to plan your best approach when you place a trade.

    Summary

    Spread betting forex
[http://www.cityindex.co.uk/spread-betting/spread-bet-markets.aspx ] with City Index offers
multiple benefits to traders; both new and experienced traders are offered an easy entry
level into a range of markets, such as forex, through the small initial deposit
requirement.

    The key to success is to research, plan, manage your risk, stay disciplined and follow
the news; all of which should be covered through a comprehensive trading strategy.

    Learn more about spread betting on foreign exchange rates with City Index
[http://www.cityindex.co.uk/range-of-markets/Currencies-Spread-Betting.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. We provide access to a wide range of instruments including margined foreign
exchange, CFDs and, in the UK, financial spread betting
[http://www.cityindex.co.uk/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

Joshua Raymond, City Index, +44(0)20-7107-7002, joshua.raymond@cityindex.co.uk

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