Spread Betting Strategies

In this article, we’ll look at a few common spread betting strategies to help get you started. Whilst we’ve done our best to hand-pick a couple of the more simple strategies, there really is no substitute for proactivity in spread betting. So, whichever strategy you end up opting for, try to stay up-to-date on changes in the markets.

Spread betting strategies

Read the News

Seriously. One of the best things you could possibly do when learning the principles of making successful trading decisions is observing the impact finance-related news can make to the markets. Take, for example, the news that a popular bank is planning a change to its interest rate. You’ll undoubtedly see a swing in bonds, stock indices and other areas as a result. The beauty of this spread betting strategy is that, through a correct interpretation of a given piece of news, you could stand to make a substantial profit quickly, and without a large investment. Furthermore, you’re not relying on anyone else’s information, so successful bets are rewarding, whilst unsuccessful bets present a great opportunity from which to learn.

Swing Trading

Swing trading with spread betting is an excellent means of exploiting the peaks and troughs of your chosen market/s, because you’re not constricting your profits to either selling long or selling short; you’re chasing the best of both worlds by riding trends until the time’s right to choose your next move.  The concept is relatively simple and can be applied to most markets, opening up a great deal of flexibility for new and experienced traders.

The greatest aspect of swing trading, is that there’s no need to read the try and predict the next trend of the market. All you need to do is let the market decide your next action, be it to wait, sell or buy. Of course, there are means of identifying swing points with more accuracy, and these include momentum indicators. If, for example, you see that a daily relative strength index (RSI) is moving in the direction of oversold, it could be time to try an hourly RSI to help gauge the correct timing of your trade.

The sheer quantity of spread betting strategies is astounding, so start with the one that appeals to your current knowledge of spread betting and work from there. Remember, simplicity is your ally when you start out in spread betting.

  • BrokerEUR/USD
    SpreadEX 0.6pips (variable) margin: 3.33%
    FX Pro 0.91pips. (variable) margin: 3.33%
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