Traders look more closely at opportunities in the differentials markets, which are becoming an increasingly widespread addition to the traditional markets offered by spread betting brokers.

Differentials offer spread bettors the chance to trade on the different between two markets, such as the FTSE100/DAX 30, and enable traders to profit on the gap between two indices over the course of the transaction.

With brokers increasingly looking to provide new markets and investment opportunities for their clients, differentials are becoming one of the main growth areas for brokers and traders alike, providing a new range of possibilities for traders looking to diversify their portfolio.

By exploring new markets like differentials, traders can spread the risk of their investments and profit from a wider range of trading opportunities.

Differentials are becoming an increasingly popular choice for brokers, looking to expand the horizons of what they can offer to their clients. Made up on the basis of the difference between the price of two paired markets, differentials allow traders to speculate on how two markets will interact over the course of the trading period, which provides an additional degree of flexibility that is unparalleled in spread betting and other trading styles.

For traders who have yet to consider the benefits of investing in alternative markets like those differentials offered by their brokers, the opportunities for diversification and exploitation of different market circumstances make it an advisable means of trading, drawing on the advantages of leverage and low transaction costs in an altogether more flexible way.

Last Updated: May 9th, 2011