There are many strategies that define how to trade forex but not many of those techniques contain spread betting strategies which is the manipulation of your betting platforms to increase behalf possible and limit losses. Distinct spread betting platforms have Distinct features and methods of using their platforms so in this description I am going to form a few strategies that I use with my singular spread betting platform.
First of all don't confuse spread betting strategies with actual trading strategies, although as foremost they are not the same thing. Forex spread betting is the placing of a bet on which way you think a currency is going to go, up in value or down in value. There are things to consider when placing your bet such as how much you are willing to let the trade go against you before you exit at a loss, known as a stop loss, or how much you want the trade to go in your favour before you exit with a profit, known as a limit order.
Although you can always exit a trade at any time manually it is always recommended to trade with a stop loss. It is the manipulation of the stop loss that I would consider to be a good spread betting strategy. It is known that the financial markets move in waves and whichever trading strategy you use to enter a trade you should have a spread betting strategy to play once in the trade as part of your trading plan.
One of the most favorite and minute risk methods of spread betting is to enter a trade and once 20 pips in behalf move your stop loss up to your entry point as to eliminate risk. Sounds good in theory but as the shop moves in waves the chances are you will be knocked out of your trade with zero behalf the majority of the time. You can by comparison on this basic theory by taking out 80% of your behalf at 20 pips up and provocative your stop loss up to your entry point that way you still have 80% of your behalf on a reversal and if it keeps running you still have 20% on the trade.
There are also trailing stop losses available on most spread betting platforms, these tend to work great with the longer term trades. As previously mentioned the shop moves in waves so you would need to allow for this in your trailing stop loss, that will move up to a pacific length from the price that you requested. A good example of this is when you enter a trade in the former example and the trade keeps running in your favour, it would be a good spread betting strategy to at last set a trailing stop loss of 100 pips.
Forex, Spread Betting Strategies
