Turkey 30 Index Spread Betting
The Turkey 30 index, as it is called by some spread betting providers, is a market capitalization weighted index of 30 actively traded stocks on the Turkish stock market, the Istanbul Stock Exchange (ISE). It is also often referred to as the ISE-30, or the ISE National-30. It was set to a base value of 976 at the end of 1996. The 30 stocks account for about 70% of Turkey’s market volume and market capitalization in the stock exchange which has just over 300 stocks listed.
The Istanbul Stock Exchange is also known as the IKMB in Turkey, and was established in 1985, with active trading starting in 1986. It has a fully automated electronic exchange. In the global economic downturn of 2008 the total capitalization on the exchange was more than halved, but by the end of 2009 things were recovering. In fact, in 2009 Turkey and Greece combined to launch a joint “30” index, called the GT-30, which has 15 stocks with the highest market capitalization from Greece and 15 stocks with the highest market capitalization from Turkey, and it is important not to get the Turkey 30 confused with this one when you’re doing research.
Turkey has been performing strongly over the last few years but the country still depends on European banks for investment. If European banks continue in their recovery patch, this may well benefit Turkeys stock market and naturally the Turkish lira.
Looking at the chart, you can see that the ISE-30 has low volatility, and has not moved much in recent times, which would make it a good choice for the beginner to spread betting as they will be less likely to be caught out by the price moves. However, with little volatility there may not be much profit to be made. The other disadvantage of trading on the Turkey 30 index is that you might find information is hard to come by, and therefore it is difficult to know when to place your trades. Searching on the Internet for information, as you can with other indices, is made somewhat more difficult by the fact that you will be presented with many recipes for cooking turkey.
If you want to spread bet on the Turkey 30, then you should start by looking at the recent charts on various time scales. It can help to print out a set of these, on which you can sketch out possible support and resistance levels, as well as try to identify trend lines and channels. The actual numerical value of the index is about 72,000, and therefore the spread betting provider will probably allow a small stake per point – IG Index allows stakes down to 10 pence per point.
You will find that the MACD and Bollinger Bands provide you with some good information about the movement of the price. Bollinger Bands in particular can help confirm that a breakout is to be expected, as the bandwidth will narrow just before the price makes a move. However, you need to have other technical indicators to decide which way the pressure will be relieved, or wait until there is a breakout. With the situation in Europe, you will find that trading this index will prove to be a technical task.
Spread Betting on the Turkey 30 Index
The current spread betting quote for the Turkey 30 index, otherwise known as the ISE-30, is 71,900 – 72,050 for a futures style bet expiring shortly. As you can see, the number is very large, and therefore the spread betting provider will usually allow you to place a smaller than standard size bet per point. You need to check this data online, or by calling your provider.
If you think that the index is going down, reflecting the continuing problems in Europe, then you could place a short or sell bet for perhaps 40 pence per point at the selling price of 71,900. If you are correct, the index might fall to 70,125 – 70,275, and you could close your bet and collect your winnings.
Your spread betting company will calculate how much you have won automatically, but if you want to check on their figures, you simply have to work out how many points you have gained and multiply it by your stake per point. In this example, your bet went on at 71,900 and was closed at 70,275, the buying price as this was a short bet. That means you have gained 71,900-70,275 points, which comes out to 1625 points. With your chosen stake, your total gain works out to £650.
Often you will find that your bet is a loser, with the price going the opposite way to the one that you thought it would. It is important to realize that this does not mean that your analysis was faulty (although it might have been) – even the best of traders have their share of losing bets, and they maintain their profit by closing the losing positions quickly before the losses mount up.
Say the index goes up to 72,330 – 72,480, and you decide you must close the bet to preserve your capital. Your bet went on at 71,900, and this time it closed at 72,480. The difference in points is 580, against you as you had a short bet. Multiplying by your stake, you have lost £232.
Consider a second example of betting on the ISE-30 index. The quote is 71,900 – 72,050, and you stake £.50 per point that the index will go up. Say the price goes up to 74,120 – 74,270 and you close your bet and take your profit.
Your bet went on at the buying price of 72,050, and you closed it when the selling price was 74,120. Taking one away from the other, you have gained 2070 points. Taking the amount of your stake into consideration, that means you have gained £1035 on this bet.
For balance, again you must consider that your bet might have been a loser, and be able to work out how much it would cost you. Perhaps the price went down to 71,645 – 71,795, and it plainly wasn’t going to work out so you closed it and accepted your losses.
The starting price was 72,050, and it closed at 71,645 for a loss of 405 points. Multiplying this by your stake, you find you have lost £202.50.
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