Four Major Indices in Spread Betting

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Jan 19, 2011, 06:43 ET

LONDON, January 19, 2011 /PRNewswire-FirstCall/ -- Spread betting on indices is one of the most popular forms of trading. Indices themselves are the most traded markets in the world. With this in mind, City Index (http://www.cityindex.co.uk/) currently offers 1 point spreads on four major indices - the UK 100, Wall Street, Germany 30 and France 40 during market hours - which makes them a good place to start spread betting and CFD trading. As with all markets, it is best to know exactly what is you are spread betting on. So what are indices?

Indices are the cumulative value of a set of stocks. The stocks are generally based on the largest publicly-traded companies within their respective countries. When spread betting on indices, you are investing in the index as a whole. As they are made up of the largest companies, the indices are very closely tied to the national economy. This means you are able to inform your spread betting strategy with global economic and financial events.

The indices on which City Index offers 1 point spreads ( http://www.cityindex.co.uk/1point-spreads/) are:

UK 100

The share index of the UK's 100 highest stocks. As London is the financial centre of Europe, the UK 100 is Europe's most important index. The UK 100 represents around 80% of the London Stock Exchange's market capital. All companies listed on the UK 100 must include PLC in their name, indicating they are public limited companies. Trading hours are from 08:00 to 16:30 GMT.

Wall Street

The Wall Street index is based on 30 large publicly owned companies. Unlike the UK 100, it is always the same 30 companies in the index, which is something to bear in mind when formulating your spread betting strategy. Market trading opens at 14:30 and closes at 21:00 GMT, during which time you can take advantage of City Index's 1 point spreads ( http://www.cityindex.co.uk/1point-spreads/).

Germany 30

The Germany 30 is measured by the performance of the 30 largest German companies, based on order book volume and market capitalisation. The companies featured in the Germany 30 are decided on quarterly review. The market hours fall between 08:00 and 14:30 GMT.

France 40

As with the Germany 30, the companies listed in the France 40 are included based on quarterly review. At each review, the companies listed on Euronext Paris are ranked by the previous 12 months' performance and forty are chosen for inclusion. The market hours are between 07:00 and 17:15 GMT.

Whichever index you choose to spread bet on, be sure to know the risks involved. City Index offers a range of seminars and guides to increase your knowledge of spread betting and risk management.

    You can find out more about spread betting at
http://www.cityindex.co.uk/spread-betting/.

For more information on learning to trade with City Index visit http://www.cityindex.co.uk/learn-to-trade/.

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

http://www.cityindex.co.uk/

SOURCE City Index