Bet On The Markets Using Financial Spread Betting Strategies
Financial spread betting can take a great amount of the risk out of trading and good money can be made. This is a cost effective and tax free (in the UK) way of alternative share trading. It is a method which is used online where the trader is able to speculate without the assistance of a stockbroker.
Speculation on the movement of stocks and shares when you don't have to pay commissions to a broker has its benefits. It basically means that the trader makes more profits. The trader is required to place a wager on financial markets and if the prices of these will increase or fall.
The "spread" refers to the "Sell/bid or Buy/offer price. These prices are calculated based by adding more points to the live market price of the product (financial) and this is the estimated future price. This price is quoted by the spread betting company. An example of this is if the Daily FTSE trades at 4729, then the company will quote figures of say 4727 - 4731 and the trader places a bet on this price.
To open a new position in the market a very small deposit is required, generally about dollar, euro, pound10 - 40. Each bet is on each point or tick in which the market moves, either up or down. The stake is usually 1 on each point of movement and will represent either profit or loss.
Maximum stakes are different according to each financial market, but the wager is on whether the market price increases or falls. Once the wager is placed, if the bet was on a market increase, the spread better makes a profit. If the market falls, they make a loss. This loss can be substantial if the market drops substantially as the amount of ticks or points the market moves downwards is multiplied by the bet which was placed. By the same token if the market moves in the direction forecast by the trader, the points' movements are multiplied by the amount of the wager. So you can see why profits can be made.
Because of this fact, the financial spread better has to understand that the market is often able to move quite substantially in the opposite direction to the wager made. This can mean a substantial loss, but by the same token, if the market moves in the direction predicted, a substantial profit can be made.
In the UK profits from spread betting are considered to be the winning of a "bet" and this makes them free of Capital Gains and Income Tax.
New spread betters should always practice with a demo account first to see if they are able to grasp the concept. Learning about spread betting first without any financial risk is the best approach. The demo account will emulate precisely how a live account will react and it comes with a guide for beginners.
This means a new trader is exposed to the system first with no financial risk. Once they are confident that they understand the system fully, and have come to grips with the concept. They can begin live trading. Any online company you sign up with for a spread betting account must offer you this demo account, if they do not have one available, look for another spread betting company. - 23200
Speculation on the movement of stocks and shares when you don't have to pay commissions to a broker has its benefits. It basically means that the trader makes more profits. The trader is required to place a wager on financial markets and if the prices of these will increase or fall.
The "spread" refers to the "Sell/bid or Buy/offer price. These prices are calculated based by adding more points to the live market price of the product (financial) and this is the estimated future price. This price is quoted by the spread betting company. An example of this is if the Daily FTSE trades at 4729, then the company will quote figures of say 4727 - 4731 and the trader places a bet on this price.
To open a new position in the market a very small deposit is required, generally about dollar, euro, pound10 - 40. Each bet is on each point or tick in which the market moves, either up or down. The stake is usually 1 on each point of movement and will represent either profit or loss.
Maximum stakes are different according to each financial market, but the wager is on whether the market price increases or falls. Once the wager is placed, if the bet was on a market increase, the spread better makes a profit. If the market falls, they make a loss. This loss can be substantial if the market drops substantially as the amount of ticks or points the market moves downwards is multiplied by the bet which was placed. By the same token if the market moves in the direction forecast by the trader, the points' movements are multiplied by the amount of the wager. So you can see why profits can be made.
Because of this fact, the financial spread better has to understand that the market is often able to move quite substantially in the opposite direction to the wager made. This can mean a substantial loss, but by the same token, if the market moves in the direction predicted, a substantial profit can be made.
In the UK profits from spread betting are considered to be the winning of a "bet" and this makes them free of Capital Gains and Income Tax.
New spread betters should always practice with a demo account first to see if they are able to grasp the concept. Learning about spread betting first without any financial risk is the best approach. The demo account will emulate precisely how a live account will react and it comes with a guide for beginners.
This means a new trader is exposed to the system first with no financial risk. Once they are confident that they understand the system fully, and have come to grips with the concept. They can begin live trading. Any online company you sign up with for a spread betting account must offer you this demo account, if they do not have one available, look for another spread betting company. - 23200
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Before starting in Financial Spread Betting Strategies, check out the authors review on ODL Markets Trading
posted by X - Men @ 1:48 AM
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