The FTSE 100 is the most popular index for UK spread bettors. It represents the 100 largest companies listed on the London Stock Exchange, weighted by market capitalisation. Here is how to trade it effectively.
What Moves the FTSE 100?
- Global sentiment — the FTSE is heavily weighted towards international earners (miners, oil companies, banks), so global risk appetite matters more than UK domestic news
- GBP strength — a weaker pound boosts the FTSE (foreign earnings are worth more in sterling) and vice versa
- Oil and commodity prices — Shell, BP, Glencore, and Rio Tinto make up a significant share of the index
- Bank of England decisions — interest rate changes affect banks and housebuilders
- US market moves — the FTSE often follows the S&P 500, particularly at the open
Trading Hours
The FTSE 100 cash market is open 08:00-16:30 GMT. However, most spread betting brokers offer extended hours on the FTSE via their own pricing, typically from 07:00 to 21:00 or even 24 hours. The most volatile periods are the first hour after the open (08:00-09:00) and the US market open overlap (14:30-16:30).
FTSE Spreads by Broker
| Broker | FTSE 100 Spread |
|---|---|
| IG | From 1 point |
| CMC Markets | From 1 point |
| Pepperstone | From 1 point |
| City Index | From 1 point |
| Spreadex | From 1 point |
Popular FTSE Strategies
Gap Trading
The FTSE often gaps up or down at the open based on overnight US and Asian market moves. Gap traders look to trade the initial move or fade it (bet on a reversal back towards the previous close). The first 30 minutes are key.
Range Trading
In quiet periods, the FTSE often trades within a defined range. Identify support and resistance levels from the previous session and trade bounces between them. Use stops just beyond the range boundaries.
Trend Following
On trending days (often triggered by major economic data or geopolitical events), the FTSE can move 100+ points in one direction. Use moving averages or breakout signals to identify and ride these moves.
Margin Requirements
FCA rules require a minimum 5% margin on major indices. At FTSE 10,800 with £1 per point, that means a minimum deposit of £540 to open the position. Most brokers charge this standard rate.
Between 51-82% of retail investor accounts lose money when spread betting. Past performance of any strategy does not guarantee future results.
