Do You Know Your Spread Betting Jargon?

LONDON, October 14, 2010 - Know your resistance level from your rollover with these financial spread
betting terms and definitions, courtesy of provider Finspreads
(www.finspreads.com).

Arbitrage

In spread betting, arbitrage describes the simultaneous buying and
selling of a product at two different prices in two different markets,
resulting in a profit without the usual level of risk associated with spread
betting.

Black Monday

Refers to October 19, 1987, when the Dow Jones Industrial Average fell
508 points on the heels of sharp drops the previous week, catching spread
bettors completely by surprise. On Monday, October 27, 1997, the Dow dropped
554 points, but while the point drop set a new record, the percentage decline
was substantially less than in 1987.

Grey Markets

The term given to the markets that a spread betting provider offers that
are not listed on any exchange. For example, with Finspreads, IPOs and
political bets are grey markets. You can see what other markets are available
at www.finspreads.com/our_services/spread_betting_markets.aspx.

Intrinsic Value

The value of an option if it were to expire immediately with the
underlying stock at its current price.

Lagging Indicators

Economic indicators that follow, rather than precede, a country's overall
pace of economic activity.

Leading Indicators

The opposite of lagging indicators, leading indicators change before the
economy does.

OCO

One Cancels the Other orders let you leave two separate opening orders in
the same market so that if one of them is triggered and filled, the other
spread bet is cancelled, leaving you with just the one open financial spread
betting position.

Resistance Level

A price level above which it is supposedly difficult for a spread betting
security or market to rise.

Rollover

A rollover is the transferring a spread betting position that is near
expiry into the next contract period.

Slippage

Also known as a Market Gap, this is the spread betting term used when the
price of a stock rockets or dives in a direction away from its last price
range. Slippage often occurs during periods of higher volatility, which is
why some spread bettors choose to use guaranteed stop loss orders
(www.finspreads.com/learn_to_spread_bet/managing_your_risk.aspx)
during these times.

Underlying Asset

The security or market that spread betting providers such as Finspreads
derive/base their prices on.

For more useful insights about spread betting, try a free Finspreads
seminar. Visit
www.finspreads.com/learn_to_spread_bet/spread_betting_seminars.aspx
for a list of upcoming workshops.

Spread betting carries a high level of risk to your capital with the
possibility of losing more than your initial investment and may not be
suitable for all investors. Ensure you fully understand the risks involved
and seek independent advice if necessary.

Contact: Joshua Raymond, City Index Group, Tel: +44(0)20-7107-7002, Email: joshua.raymond[at]cityindex.co.uk, Jonathan Smith / Alex Nekrassov, New Century Media, Tel: +44(0)20-7930-8033, Email: jsmith[at]newcenturymedia.co.uk / alexnekrassov[at]newcenturymedia.co.uk