The FTSE (Financial Times Stock Exchange) is one of the world’s leading stock markets, operating a number of individual markets from its centre in London. Comprising the largest stock markets in the UK, the FTSE is responsible for a significant proportion of global daily trade, and is extremely popular amongst traders the world over. But why in particular is the FTSE popular amongst spread bettors, and what are the advantages of trading on FTSE markets?
Why Is FTSE Spread Betting So Popular?
The FTSE markets benefit from being well known amongst traders, which in turn helps fuel their popularity. Because they are widely traded, there is an active market for the securities it lists, which ensures regularly significant price movements as the momentum of mass supply and demand weighs in alternative directions. For spread bettors in particular, who by virtue adopt highly leveraged positions, this means the FTSE markets can deliver significant returns for the savvy trader.
The FTSE also offers a range of markets for traders and spread bettors to choose from, most notably the FTSE 100 and the FTSE 250, covering the largest 100 and the next largest 250 UK listed companies by market cap respectively. These two predominant indices allow spread bettors access to volatile but regulated markets, allowing for extensive gains (and losses) on daily movements. And because both markets are heavily traded (particularly by institutional investors), they are highly responsive to externalities such as economic indicators, making for slightly more predictable trading conditions.