0 What is Spread Betting and how to Capitalize on it?

Spread betting is a popular form of trading on margin. It is by far less costly than trading regular shares, and it contains some inherent flexibility. As to online trading, InterTrader presents the best deal on spread betting. InterTrader makes the trading experience easy and comfortable. Their Bonus for initial accounts is up to a whopping £1,000. They aim to make you a happy trader for the entirety of your trading life. Tight fixed spreads and flexible mobile dealing are what you can expect at InterTrader. Helpful, courteous and cost effective trades define the spread betting experience at InterTrader.

Spread Betting Defined

Betting on the future rise or fall of a trading instrument is known as spread betting. The spread is the difference between the Buy bet, known as the offer, and the Sell bet, known as the bid. The fall and rise in value of the instrument being traded is calculated in terms of points. The investor places a specific bet amount per point. Let’s say you find a stock that appears to be at the threshold of a rise in value. Spread betting provides the opportunity to cash in on any immediate increase when you place a Buy bet. If that stock indeed experiences an increase in value, then you may close with a Sell bet at the higher value.

In practical terms, if you place a Buy bet of £15 per point for Stock Z at 110 and it rises to 115, then the spread is 5 points. You may then choose to close your position, placing a Sell bet at 115. Your profit will be the spread times the bet amount: £75. Now look at a stock which you perceive will fall in value. Without first placing a Buy bet, place a Sell bet. If you were correct, and the stock plummets, you would close your position by placing a Buy bet at the lower value. Placing a Stop Loss will limit your risk. In a volatile market, you could incur a major loss in the absence of a Stop Loss.

Spread Betting at InterTrader

An ever-increasing number of investors are finding spread betting at InterTrader to be an accessible and affordable method of trading when the focus is on rising and falling markets. Traders are consistently relieved to discover the tight fixed spreads; low margin rates; and wide variety of trading instruments, some of which include trade indices, forex and shares. Further, all spread betting gains are untouched by Capital Gains Tax and stamp duty. Secure service and user-friendly platform are the hallmarks of InterTrader. You can rely on InterTrader’s quick and accurate completion of every transaction. You will find dependable and easy access, along with transparency in the separate and secure placement of all client funds. Of primary importance to every investor is InterTrader’s cost-conscious trading package including a complete support system. You will receive free training tools as well as free live charts and trading signals. As an added bonus, traders enjoy a savings of up to 10% of their cost with TradeBackTM.

This article has been contributed by InterTrader.com, a UK based spread betting provider.

4 Choosing the Right Indicator for your Binary Options Trading

Binary options come in different shapes and sizes. It is possible to trade commodities, stocks, indices and currencies. It is possible to trade over a week, a day, 2 hours, 30 minutes, 15 minutes or even 60 seconds. The information that is needed to have predictive accuracy is different for each trading scenario. Essentially though Binary Options are simple. You either predict that the direction of a price will go up or down. Indicators can eliminate the need to spend hours doing technical analysis to understand the current trends, and likely future trends. Or they can be used as a small part of an overall strategy. The right indicator is all about the strategy.

What successful traders tend to do is develop a strategy for a particular scenario type. For example, they may trade a certain stock with thirty-minute expiries. They may use indicators to point them to the fact that a bullish or bearish trend is likely to continue. This same indicator would probably not be relevant for a 60 second trend as the fluctuations are too unpredictable. Indeed, most serious traders tend to stay away form the 60-second trades. 

 

There are many indicator services available on the market. Some profess amazing success rates. At the end of the day they are all after your subscription and you should be wary of overinflated claims. Choose an indicator service that has a long history of success, check forums and find out what others are using, and read reviews. If an indicator service is going to be an important part of your analysis strategy you should vet thoroughly and then test it repeatedly. Good service providers will offer a trial to demonstrate their proficiency.

It is important to take a balanced view of indicator services. They can add value to your trading, save you time and improve your success rate. However, you should understand your technical and fundamental analysis and not rely on an outside service too much. Many people that are new to binary options are looking for the magic solution. In reality trading successfully and consistently is about using indicators for trends, moving averages, economic indicators to inform your understanding and help you reach a level where you have predictive power on an ongoing basis. 

 

Indeed, the right indicator is the one that provides you with information to make a successful trade. Often traders will use indicators to confirm something they already suspect. Trading successfully is about going through a process. Being confident that a price is going to go a certain way may involve doing ones own technical and fundamental analysis, reading reviews from others and then checking indicators to see whether they corroborate what you suspect. For some traders the indicator service information has the power of veto but is not used for initial predictive insight.

So the right indicator is dependent on the personality of the trade and the strategy adopted. Getting an edge in binary options trading is not easy. Use indicators wisely and understand your traded assets better than others and you have a strong likelihood of ongoing success.

About the author:

Eleonora Marchetti is an expert on financial markets specializing in foreign exchange and trading in binary options. An honorary graduate of the SDA Bocconi School of Management in Italy, she provides consultation services to various economic powerhouses, including the globally renowned binary options trading firm, Banc De Binary.

0 The hidden truth behind travel money

The hidden truth behind travel money – the complete guide for penny pinchers

Every year we sit around and wait for that period of time when we can forget about work, leave the kids with grandma and get on a plane bound for a far and mystical destination. We spend hours planning it; which hotel is best value for money, plan routes, compare ticket prices and research the amenities at our chosen place of holiday. On my last trip to Brazil with my wife I couldn't believe how much money we wasted on exchange rates in retrospect. Once home, I educated myself on the subject. Astonished at what I found, I wanted to share it with others so they won't make the same mistakes we did.

You must think, “it can't be that much”. Well, if you are converting Euros to Dollars you can possibly lose on €40 for every $500 you exchange! That got your attention didn't it? There are 2 elements to consider when approaching the matter; the exchange rate offered and commission fees. Exchange Bureaus make their money from the difference between the value they buy and the value they sell. The higher the exchange rate they offer - the better, so you better find out what the current exchange rates are before buying or selling any sort of currency. Commission fees may be in the form of minimum charges, flat fees and handling fees. Beware, some bureaus may offer great exchange rates but come with high commissions and vice versa. Do your research – and pay attention to the details.

So here are some pieces of advice on how to save a buck or two. First and foremost, stay clear away from Airport bureaus – they are exchange death traps and are renowned for offering poor exchange rates as well as high commissions. Also, whilst you might expect your bank to give you the best deal on foreign currency – don't just assume since it will not always be the case.

Whilst away, pay cash whenever you can - credit card usage often involves transaction charges which might not seem a lot at the time but trust me, they pile up. Using your debit card for purchases abroad might cost you approximately 2% - your bank doesn't like it when you exchange your money elsewhere (Check your bank credit policy before jetting off). Of course it would be foolish to carry so much cash, the last thing you want is for it to get lost or stolen and ruin your time away.

So what other cash alternative are there to ensure your piece of mind? Prepaid cards have the same usage as debit/credit cards but without the exchange rate fees , they work by charging them with cash before the holidays. Travellers cheques are also a safe bet though slightly outdated. However, even these two are subject to different fees, so read the fine print.

In conclusion, my advice to you, is to spend as much time planning your holiday money as you do the rest of your trip. There is nothing worse than returning from a trip and seeing a big dent in your bank account, especially when you will already have the post-holiday blues!