Spread Betting Tips and Strategies

Read more about what Forex trading is, how to trade Forex and discover a range of tips and strategies.

Spread Betting Basics

01Spread Betting Basics

tips_and_strategies_discipline

Discipline

Spread betting tips for beginners usually start with one word – discipline. Experienced and successful traders operate a strategy and stick to it. This ethos is important for trading success, but no guarantee of profit – the market can always move against you.

tips_and_strategies_research

Research

Time spent in reconnaissance is seldom wasted. Likewise conducting research is important in spread betting. Past performance is no guarantee of future returns, but traders should always try to understand what’s been steering the price direction up until the point they choose to enter the market.

Spread Betting Risk Management Strategies

0​​2Spread Betting Risk Management Strategies

Targets

Setting a target and managing risk is also important. For example a common approach is to apply a 3:1 risk-reward ratio. In other words, a profit target should be three times the amount you are prepared to lose. If you’re buying the UK 100 at 6,000 with a 300-point target, this strategy would entail setting a stop-loss at 5,900 and limit order at 6,300.

Stakes

Risk management also impacts your position size. Many traders would never risk more than 2% of their stake, but it’s largely down to personal preference. Risk is about what you are comfortable with, not what someone else thinks.

Losses

Too many traders cut winners and let losses run. A successful trading strategy needs to see this reversed – cut the losers early and let the winners run and run. This, of course, is harder in practice than in theory.

The most important tool in managing risk is the simple stop-loss. Stops mean you can set the maximum level of loss you are prepared to sustain for the trade. Stops can act against the trader – if you set it too close to the entry point you may get stopped out before your spread bet has a chance to make a profit. But triggering a well-placed stop is better than losing more than you have in your account.

For more on spread betting tips and strategies, head to the trading education for the latest webinars and analysis.

SHARE THIS

« PREV

New to
Spread Betting?

NEXT »

Spread Betting
vs CFDs

Spread Betting?

Spread Betting vs CFDs

Spread betting and contracts for difference (CFDs) are leveraged-based derivative products for trading on thousands of different...

READ MORE

Spread Betting Markets

At ETX Capital, there are more than 5,000 tradeable markets across forex, indices, equities, commodities and bonds.

READ MORE

How to Spread Bet?

Spread betting lets you speculate on the future price direction of a security, such as Apple shares. If you think these will rise...

READ MORE

Spread Betting Overview

Join one of the UK’s leading spread betting providers to enjoy access to the world’s markets. Instant execution, powerful...

READ MORE

New to Spread Betting?

Spread betting is a tax-free* way for investors to trade on thousands of global markets across forex, equities, indices, commodities and bonds.

READ MORE

What is Spread Betting?

Spread betting is a leveraged-based derivative for trading on thousands of different financial markets.

READ MORE

Spread Betting Tips and Strategies

Leverage, targets, stop-losses, limit orders, margin calls - traders are always on the hunt for information.

READ MORE