Spread Betting Questions from Beginners, Advanced and PRO Traders!


Andy fields our readers' spread betting questions...
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I think most traders know that the 'Trend is your friend', but how many know what is a trend, how to identify that, what is the time period to be considered?
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Do you think technical analysis is useful in predicting share trends?
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Isn't a chart a thing of the past - I mean it's all nice and dandy but isn't it just the past?
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I know you don't consider yourself a chartist, but to what extent do you think chart analysis is looking back after the event?
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I read all your comments about charting, and although I don't consider myself stupid, does one have to be technically minded?
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I'm trying to learn to read price action without indicators...
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What is scalping?
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Will a spread betting bookie stop you if you scalp consistently?
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Why is that that most spread betting companies do not welcome scalpers?
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What's the difference between scalping and day trading?
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When it comes to scalping and scalpers what kind of profit are they really looking to make?
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What are the limitations scalpers face?
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Why would any short term trader, making decent money and presumably trading relatively full time, want to use a spread bet account and not an ECN type set up anyway?
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Why do spread betting bookies hate arbers?
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Why is arbitrage trading not recommended?
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Are the markets really so efficient that any pricing inaccuracies are swallowed by x thousand hedge funds in an automated fashion?
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Some of the problems will affect end of day traders less than intraday traders. How is that?
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How does Level 2 work?
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Why is Level 2 useful? Do I really need it?
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Does the Level 2 order book give me some indication of what direction things might go in the coming hours or days (or even longer?).
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What are SETS/SETSmm/SETSqx?
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What is the Yellow Strip?
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Could I ask whether you know where I might find volume data feed for the indices or markets? Also would you know anything about level 2 data and whether it would help trading commodities and currencies?
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Could you enlighten me on the colour changes on Level 2? I can understand Blue = change up and Red = change down. But why change to Black?
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On Friday i was trading avz and bought nearly 25000 at around 414p. Even though there were more buyers than sellers price dropped to nearly 400p then picked up...
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If one puts in an electronic sell or buy at best and then cancels, do you think that this information is factored into the market?
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Barclays - Market Makers will try to shake a few PI's into releasing their holdings sometime tomorrow before the share price moves above £1
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So how do Market Makers work? If I fill their 2000 or so order will they push the offer up?
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When you see a trade go through for say 12 shares or even 1 share, what is that all about?
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What does it mean when a market maker's price for a share is £1.69 sell and £1.75 buy (6p spread)- does it say you are not buying any but you can sell them?
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What are these big trades I'm seeing being traded off the market (not showing on Level 2)?
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6x more buys than sells and yet the price has fallen...
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What are t10s, t20s and so on?
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What is extended settlement?
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When news comes out how does the stockmarket know what price to set each stock if there's a change in interest rates for example?
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I see on a lot of forum discussions that x company announced good news but the share went down...
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But how do Market Makers work exactly?
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I'm seeing more sells than buys yet Rank Group is moving up!?
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Bid - Offers prices - why does sometimes the offer price happen to be lower than the bid price by between 5% & 7%?
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Can market makers manipulate the buy/offer to have transactions wrongly tagged as SELL?
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Why do I see less market makers on certain stocks?
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But aren't market makers obliged to take trades, whether they like or not - they have, by law, to make a market!?
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Who decides how much of an increment in market price and how long the market price keeps increasing for a share?
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Why is there such a big discrepancy with the price quoted and the actual selling price on some shares quoted on Plus?
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It is said that market makers are there to provide liquidity. Is this correct? Is providing liquidity their only job?
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Do interest rates affect the prices of stocks?
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Why is that dropping interest-rates doesn't always work?
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What are your thoughts on free trading seminars?
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A spreadbetting training company will give me a 2 day course for £2200. And a monthly subscription service of £90 a month!
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Is it a good idea to take a course coaching you about spread betting costing well over £2000 which teaches you to work within 1% of risk of losing?
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What is your take on Advisory Brokers?
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Are you saying that asking stockbrokers for advice is a bad idea?
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I was called by lauruscap.com re-shares in MBSM offered at $0.5 and foolishly or not I purchased them.
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Do you know anyone good who can invest my money for me?
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Can I use spread bets to hold out longer term positions?
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If I were to hold a £20,000 Vodafone spread bet position for a year in the form of future contracts how much would this approximately cost me?
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If I were to hold the same £20,000 Vodafone spread bet position for a year in the form of rolling daily contracts how much would this approximately cost me?
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Also, if I hold shares in Vodafone I get twice-yearly cash dividend payments from the company...
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I think long term is difficult with SB. Certainly gold and silver are fairly limited to about 3 months out, currencies 6 months and indices/stocks max one year...
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If I were to sell shares and take a position through a spread bet offsetting that against my mortgage, would that be a positive thing?
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What is hedging?
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How do I hedge a spread bet?
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Why does hedging rarely work completely?
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How can I use spread betting to hedge my portfolio?
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I'm looking for specific examples where one can use spread betting as a hedge?
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I'm thinking of investing €10k in Irish shares, mainly some of the banks. I have read that I can hedge this somewhat by spreadbetting with a bookie...
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How do I hedge against the Euro continuing to gain against the Sterling using a spread bet?
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How do I hedge against the Dollar continuing to gain against the Sterling using a spreadbet?
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I am planning to build a house in France and have applied for planning permission. However, the current strength of the Euro is a problem...
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How do you hedge against market crashes?
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How does the Volatility Index move??
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What about gold as a hedge in a falling market?
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How do you go about making a spread bet on the telephone?
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What do you think of telephone trading? Sometimes my online orders are getting rejected...
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I use an Apple Macbook Pro and wondered which spreadbetting firms have the most 'MAC friendly' platforms?
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Any views/experience using an iPhone or blackberry to trade?
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Is spread betting regulated in the USA? What is the FSA equivalent in the States?
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I'm a UK expatriate living in Spain. As an expat can I still use spread betting as a tax-advantaged trading vehicle?
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I'm located in the United States where Uncle Sam taxes everything and outlaws anything which it can't tax (like online gambling!). Is there a way for me to open a spread betting or CFD trading account?
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Do you know why big banks ban employees from spread betting?
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Do you know whether spread betting and CFD's are permissible asset classes in SIPP's?

 ...Continues here - Questions regarding Stop Losses and Risk Management

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