The Language of Spread Betting for Beginners

LONDON, September 30, 2010 - Test your trading knowledge and boost your spread betting vocabulary with
this starter guide to the language of financial trading, brought to you by
spread betting provider Finspreads (www.finspreads.com).

Bear

The name given to a spread bettor who believes that prices in the stock
market are going to decline.

Bull

A spread bettor who believes that prices in the stock market are going to
rise.

Commodity

A commodity is food, metal, or another fixed physical substance that
traders buy or sell.

Derivative

A financial contract whose value is based on - or derived from - a
traditional security (such as a stock or bond), an asset (such as a
commodity) or a market index. Financial spread betting is one such derivative
product.

FTSE

The FTSE 100 Index, a share index of the 100 largest companies (by market
value) listed on the London Stock Exchange.

Fundamental Analysis

An examination of a company's financials, assets, management, market
niche and products in order to determine its value.

Initial Margin Requirement

The amount needed on deposit or credit in order to open a position. This
can be reduced by placing a stop loss.

Limit order

A minimum selling or maximum buying price as instructed by you, the
spread bettor. A limit order is an order to buy or sell at a better price
than where the market is currently trading.

Long

The opening of a 'buy' position in expectation that the market price will
rise.

Margin

The deposit or available credit needed on your spread betting
(www.finspreads.com/about_spread_betting.aspx) account in order to
keep your positions open.

Market Gap

A term used when the price of a stock rockets or dives in a direction
away from its last price range, therefore jumping a number of points in a
single movement. Guaranteed stop losses will protect you against market gaps.

Short

The opening of a 'sell' position in expectation that the market price
will fall.

Spike

A sharp upward or downward movement in a particular value.

Spread

The difference between the buy and sell price for a spread bet.

Stop Loss Order

A standard stop loss order is an order given by you to automatically
close a spread betting position at a particular level when the price moves
against you.

A guaranteed stop loss order requires a small charge but provides an
additional level of certainty, ensuring that even during market gapping your
spread bet will close at the exact level at which you set your stop loss.

Tax-free*

Under current UK legislation, any profits made through financial spread
betting are free of stamp duty and Capital Gains Tax.

Technical Analysis

A chart-based analysis of a financial market, using historical patterns
to identify trends. Spread bettors can learn more about technical analysis at
one of Finspreads' spread betting seminars (
www.finspreads.com/learn_to_spread_bet/spread_betting_seminars.aspx).

Wall Street

The index of the top 30 US traded stocks.

Watch List

A list of markets selected for surveillance. Watch lists can be created
quickly and easily in a Finspreads spread betting account (
www.finspreads.com/apply_for_an_account.aspx).

Now that you know the basics, find out more about financial spread
betting at www.finspreads.com

*Spread betting is a leveraged product which can result in losses greater
than your initial deposit. Ensure you fully understand the risks. Spread
betting is exempt from UK stamp duty and UK Capital Gains Tax. However, tax
laws are subject to change and depend on individual circumstances. Please
seek independent advice if necessary.

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