Financial Spread Betting Commodities: Oil

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Jun 24, 2011, 08:00 ET

LONDON, June 24, 2011 /PRNewswire/ --

In addition to indices, shares, currency pairs and many other markets, financial spread betting allows traders to speculate on commodities. The most-traded non-financial of these is oil. Spread betting and CFD trading provider City Index (http://www.cityindex.co.uk/) looks at why spread betting is an ideal way to speculate on oil.

An advantage of spread betting in general is that it allows traders to profit from a falling market as well as a rising one. With a market as volatile as oil, the ability to short sell can be crucial, as it provides you with more opportunities to react effectively to sudden price movements. However because spread betting is a leveraged product, you can lose more than your initial deposit.

Additionally, with spread betting your trades are monetised in your base currency rather than the underlying market currency - typically US dollars for oil - so your exposure will only ever be in sterling. This makes planning your entry/exit/stop loss points simpler than if you had to factor foreign currencies and exchange rates into the equation.

However when you trade oil, ensure that you always protect yourself against risk. City Index offers stop losses and limit orders to ensure you can manage your trading closely and never lose more than you are willing to if the markets should go against you.

Learn more about spread betting commodities with City Index, as well as the other markets available, at:

http://www.cityindex.co.uk/spread-betting/spread-bet-markets.aspx

Spread betting and CFD trading are leveraged products, which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, spread betting.

We constantly look to improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. For more information visit

http://www.cityindex.co.uk/spread-betting/.

SOURCE City Index