Three things an index spread better should know

Many spread betters start off trading equity indices. Ans while they seem straightforward enough, they are not all created equal. Tim Bennett explains the three key differences.

One of the keys to successful spread betting is to understand the market you are getting into. According to Cityindex many investors start off with equity indices, presumably because they seem straightforward. But do they really understand what they are betting on?

Share indices are often used to provide a snapshot on a market. Spread betters might choose to bet on the direction of a single index or perhaps even a pair (the FTSE 100 versus, say, the Nikkei 225). All major indices represent the top shares in their respective markets (FTSE 100 UK, Dow Jones 30 US), and all are very well established.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.