Examples: Trading Shares via Options Share Example: Let us use an example such as BP. Assume it is November, and you are interested in betting on the March option. The current mid-cash-price of the share on the stock market is...
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Spread Betting on Options
You can spread bet on options as well, but it must be emphasized that the risk factor in this instrument for betting is very great. The ‘gearing’ attached to options is considerable, and this is increased...
Options Spread Betting Basics
Some spread betting firms like City Index and IG Index will allow you to spread bet in equity and index options – although these are only appropriate for the more experienced as this is probably the most complex form of...
Trading the VIX – Betting on Volatility
Traders who wish to speculate on market volatility may want to consider opening a spread betting position in CBOE volatility index (VIX) futures. How can you do this? For the last few years the financial markets have measured...
Are We In for a Gold Bubble?
As I’m typing this article Gold has been plummeting…Are we in for a Gold Bubble? I think not. Of all your family members, what percentage have told you they own gold in any form? Of all your friends, how many have...
Seasonality and How it Affects Commodities
Before looking into seasonality cycles and their effects on commodities trading it is important to note that seasonality by itself does not make up a trading system (don’t go and buy oil futures just because colder weather...
Spread Betting on Commodities
Spread betting providers offer spread bets on a wide range of metals, oils and other commodities (oil and gold being the most popular). You can even spreadbet on the future price of soft commodites like coffee and soybeans in a...
Spread Betting on the Commodities Markets
Making commodity prices accessible At one time the commodity markets were only open to professional futures traders but now these fast-moving prices are readily accessible to anyone with a spread betting account. This makes it...
Everything You Wanted to Know About Commodities Spread Betting
Commodities Spread Trading Records show that the first futures contract was introduced in 1851 and futures contracts have been in operation ever since. The great thing about futures is that they turn all physical goods into paper...
Risk Free Arbitrage with Spread Betting?
Credit to Peter Marsden I noticed a while ago spread betting companies let you buy and sell currency pairs and many of them allow you to select which currency you want to use for each pip value. For example if you open a long...
