Thursday, 1 February 2007

Best Spreads

As a trader one must always look for a Broker which provides the smallest SPREADS on the stocks which one trades. This is more so if you are trading CFD's because of the high frequency in opening new positions and closing them in a short space of time in comparison with the normal way of buying shares in a company.

For instance, yesterday I was informed that "Capital Spreads" will offer a spread of "1" point on trading the FTSE100 (UK main Index) from 1 Feb 2007, which is great news for all the traders who trade this instrument regularly.

While we mentioned the FTSE100, I must point out that in my experience this index is one of the best Indices which a professional trader can trade and with the 1 point spread that "Capital Spreads" is going to offer, scalpers will be very happy indeed in particular.

I must also stress this point to the non-professionals that if you decide to trade the Indices as a whole, please be extremely cautious as regards to the stakes you pick. Take my advice and always take the minimum stake Per Point i.e. £1 per point (1 PP) due to the fact that Indices are extremely volatile and can move in wide ranges. In general it is a good idea not to trade the Indices until you have gained at least a few years experience as a trader.

No comments:


Related Posts Plugin for WordPress, Blogger...