Spread betting Guide: Spread because betting?

Friday, October 22, 2010

There are few alternatives to spread betting and each have their pros and cons, but listed below are some of the advantages compared with standard transactions:

-As product derivatives, spread betting allows you to trade movements of prices on thousands of different instruments throughout the financial markets.You aren't just limited to shares, you can trade indices, currencies, commodities, interest rates and fixed income products. After that you can go long or short term market so a declining market is potentially as profitable as a growing rendering much easier to short the market by using other methods that are available for the standard dealer.

-Spread bettors never actually own shares are betting on and as a result not charged UK stamp duty or tax capital gains; This is obviously an important advantage over standard trading. Furthermore, as the cost to your player account is through the spread, when swung into position, no fee is charged.

-Only a small percentage of your total stake is required as a deposit. Negotiation with leverage to increase your profits (or losses) significantly.Could you take effective location as a trader on the stock exchange but using only 10% (or any percentage required by your spread betting company) has chapters defined a much higher returns on your money.

-Online trading platforms allows you to trade in live on the market without delay quotes means distributing all can be made immediately.

Please note that this product is not for everyone who carries a high level of risk to your capital with the potential to lose more than your initial investment; make sure you understand fully the risks involved and seek independent advice if necessary.


View the original article here

0 comments:

Post a Comment