FTSE 250 Spread Betting
With ftse 100 spread betting, you trade on the price movement of the FTSE 250 index without buying or selling its underlying shares. A FTSE 250 position is more risky than an FTSE 100 spread bet as the stocks are less liquid and the index tends to include companies that generate revenue from abroad, meaning it can be sensitive to commodity prices.
What is spread betting on the FTSE?
A FTSE 250 spread bet is not suitable for all investors, as it is highly speculative and profits are subject to tax. It is important to set stop losses and take profit levels as prices can change very quickly. If you do not use a stop loss, your position could go against you and you may lose all of your initial investment, as well as any additional funds that have been added to your account.
If you believe the FTSE 250 will rise, you would ‘buy’ the market – a position known as going long. You can also go short if you think the index will fall. You will need to decide how much of the market you want to bet on – this is called your stake. We measure price movements in points, and you will see this on your deal ticket. Each point of movement can represent a pound or a penny, depending on the market volatility and liquidity.
FTSE 250 spread betting markets can be traded on our daily funded or futures market, but you should note that the daily funded market expires at the end of each trading day. The futures market, on the other hand, can be rolled over for three months and allows you to trade around the clock.