Q. What is a carry trade? A: This is a classic forex trading strategy which works better in times of low volatility. The trading strategy revolves around buying a high yielding currency while shorting a low yielding one and...

Q. Is spreadbetting currencies more risky? Reading some of your articles I detect some caution in spread betting currencies. Is this true for the big currency pairs like the Eur/Dollar? A: The caution is the speed and...

Q. How do you use spread betting to trade currencies? A: The simple thing to remember when trading a currency pair is that if you expect a first named currency to appreciate in value against a second named currency pair you...

Q. Why should you disregard providers flaunting low deposit requirements? A: Leverage is not what your spread betting provider allows you to use; it is what you decide to use and personally I haven’t seen one spread...

Q. What does ‘averaging down’ mean? A: Averaging down is buying stock when the price lowers so that your overall holding is priced lower than your initial investment. Unfortunately, many spread betting traders...

Q. I was badly hurt by the market over the last 2 weeks. But when should I sell? I was badly hurt by the market over the last 2 weeks and did not manage my stop losses quite well hence I had to pay the price. I have invested in...

Q. What is Gapping? A: A gap is a break between prices that occurs when the price of a contract makes a sharp move up or down with no trading occuring in between and usually happens when a share or index opens the trading...

Q. I thought that whether trading or spread betting one is exposed to currency fluctuations in the same way? After being interested in going long on wheat…etc for a while but thinking I would have to jump through some hoops...

Q. A question about spread betting please. Suppose SP = 3.15p and I buy at £100 per point, the maximum I can lose is my stake + £215? And suppose SP goes to 5p and I close the bet I would get in total £185, is that correct? It...

Q: Why am I charged a rollover fee? A: Because of the gearing aspect every product be it contracts for differences, warrants, options or spread betting must either have a rollover or a separate funding charge. Debit for...