CMC Markets Launches UK Sector Bets |
CMC Markets, a UK-based spread betting company, has just announced the launch of FTSE sector bets.
Sector bets are composed of stocks in the FTSE 350 index. Each sector aggregates all the companies that belong to that specific industry of the British economy.
Clients will have the following thirty sectors available to trade:
- Aerospace & Defence
- Beverages
- Construction & Materials
- Fixed Line Telecoms
- Food & Drug Retailers
- General Industries
- Health Care Equipment & Services
- Industrial Engineering
- Media
- Mobile Telecoms
- Oil & Gas Production
- Parmaceuticals & Biotechnology
- Real Estate Investment Trust
- Support Services
- Tobacco
- Banks
- Chemicals
- Electricity
- Food
- Gas, Water & Multi Utilities
- General Retail
- Household Goods & Home Construction
- Life Insurance
- Mining
- Non-Life Insurance
- Personal Goods
- Real Estate Investment Services
- Software & Computer Services
- Tech Hardware & Equipment
- Travel & leisure
A sector bet is useful when a trader has a view on a specific industry but does not know well each stock. An interest rate hike is certainly bad for retail making the sector a possible short target for spread betters. Identifying the exact companies that will suffer the most is a much harder task.
A trader can also buy the sectors with the best economic prospects and sell the expected underperformers, instead of buying or selling a broad-based index like the FTSE 100. Many other strategies can be developed in spread betting with the use of sector bets.
