For those of you who have been into the Foreign Exchange market for sometime, you probably find that the currency market doesn’t really present enough opportunity for you to enter the market on a daily basis. If this is the case and you are a type of aggressive trader, then perhaps you can try to make some profits from the financial spread betting.
This kind of spread betting is not too different with trading the spot Forex directly. We still have to look for some possible patterns on the chart that offer the best opportunity to get some profits.
The only difference between those two is Forex market traded directly on the chart and profits are calculated based on the price difference between open and close. While in spread betting, you have to bet correctly to the direction of the next price movement in some period of time. The range gap will be either your profit or your lost.
In Foreign exchange market, there are techniques to trade the market on intraday time frame as this also consider as short period trades which always looking for small profit gain from the opportunities that is presented on regular basis.
While in spread betting, people are usually look for the opportunities that are presented on longer time frame simply because we can see better setup on bigger chart like the daily or 4 hour chart to calculate the possibility of price movement.
Anyway, it is obvious that these two trades model are having almost the same based theory but in the reality it is not quite the same. For one to able to master each of trade model, they have to get themselves some proper education first before they even trying to enter the market.
There are some indicators of which can be used in both trade model, some people prefer to have many indicators on their chart to help them determining the possible setup or to help them see possible future price movement. And there are some traders who just use one or no indicator at all on their chart, they just rely entirely on the candlestick and support resistances areas to determine price movement.
The key to be successful in both trade models is by having the ability to do technical analysis. Spot forex traders usually combine the technical analysis they got from their chart with some fundamental analysis especially if they are professional traders that works for some institutions or in some companies that offer paper money trading as their service for their clients.
While in spread bet, people are betting against the company of which they had deposit their money to. These companies are also known as the spread betting companies that accept people’s bet on mostly financial instruments. And the fun part is that it is legal in UK and it is regulated by regulation body like the FSA which happens to be the biggest regulator in the UK region.