Spread trading (a.k.a.
Spread betting is a recent alternative to traditional brokerage
accounts for day trading. Popularised in the UK and Europe, they
avoid regulatory and tax issues usually encountered by day traders,
and allow day traders to begin day trading using only a fraction
of the capital that would normally be required. Spread trading companies
make their money from the 'spread' (the difference between the bid
and the ask), and no commissions are usually charged. For this reason,
you need a good win/lose ratio while day trading, as the moment
you open a day trade, it is underwater by the amount of the spread.
Widely regarded as the best spreadbetting firm is CityIndex , who offer a free 'virtual' realtime trade simulator so you can
get up to speed fast without risking any cash.
The SureFireThing Camarilla Equation for use in day trading is available online from these