The FTSE is a major index on the London Stock Exchange which is comprised of shares from the top 100 companies. Trading is not the only way to invest on the FTSE as FTSE spread betting is permitted. A simple strategy for FTSE spread betting is presented.
The FTSE can be fairly volatile especially at opening and this strategy is geared around this time. To begin FTSE spread betting, a trader would identify the opening call which is an estimate of where the FTSE will open. This strategy requires the trader to set up FTSE spread betting buy and sell entry and exit orders based on the opening call price.
If the opening call price is 10 points higher than expected, a trader will set up a sell bet on the spread which is 10 points higher and a buy bet 10 points lower. These FTSE spread betting limit orders are placed since the FTSE market tends to be frenzied in the morning. These orders may be executed if the price in fact does reach the expected call prices, but will then settle down.
The FTSE spread betting bets should be closed out quickly to minimise losses and collect profits.