Financial spread betting markets

The following list is not exhaustive, but a good financial spread betting company will offer all of the following broad markets for you to trade as follows, and probably more :

  • Indices – All major UK, European and Far East indices, both daily and futures
  • Bonds – T bond futures, 10 year treasure notes and gilts
  • Interest rates – Eurodollar, Euribor, Euroswiss and short sterling 3 month
  • Currencies – All the majors and minors, plus some exotics both daily and futures
  • Commodities – Oil, coffee, cocoa, cotton, wheat sugar etc
  • Metals – Gold, silver, platinum, palladium etc
  • Stocks and Shares  – All UK shares with a market cap. over £50 million ( approx), European and US stocks, both daily and futures.

In other words, virtually every market is available to trade in your financial spread betting account, and in a way there are too many options, so you need to be disciplined and to fully research your market and the product you trade. Now as I mentioned above, there are various terms that you will come across in the product descriptions, and they “describe” or specify the contract type which is critical. Choose the wrong contract and you will be trading a different market entirely and be left wondering why your contract is not performing in line with the underlying asset. In broad terms you will find three contract types as follows :

  • Daily markets
  • Rolling daily markets
  • Futures markets

Now, at this point I was going to continue with a simple explanation of each of these below. However each type of contract has advantages and disadvantages which you must understand, so I have decided instead to devote a page to each, which I hope will cover all the main points, and in particular to clarify areas of confusion.  Where possible I will also include some examples which I hope will make the point more clearly and you will find these in the appropriate section under the spread betting explained tab.