SPREAD BETTING
Tips and advice for beginners

 

What is spread betting?

Spread betting is about guessing and betting on the likely direction (up or down) of the value of a stock or share on the stock market.
On first examination, financial spread betting resembles betting on sporting events.  The risk in spread betting is always high due to the volatility of the world’s financial markets. Losses can be unlimited and can result in bankruptcy.

Spread betting is a common pastime of city traders who want to avoid huge tax bills. These days, due to the internet, spread betting can be undertaken by anyone who has internet access on their computer at home.  There are many spread betting websites that offer tutorials, simulations, guides and recourses to those brave people that want to try their hand at financial spread betting from home.

The difference between financial spread betting and share trading

The under pinning concept of buying and selling shares on the stock market is that the price of shares will raise or fall. Whether or not a share price rises or falls depends on financial reports and changes in the market in general.

Financial spread betting is different in that predicting the rise or fall of share prices one way of making a financial spread bet. Traders can also bet on very many other investment possibilities or financial outcome which are also affected by changes in the world’s financial markets. For example, spread betters can bet on the change in price of rice or the number of points the stock market will rise or fall in a day.

Accessibility of spread betting

These days, most financial spread betting is done from home on the Internet, or on the phone. Therefore spread betting is accessible to anyone who has an Internet connection or telephone.

Warning! Spread betting is not for the faint hearted

Financial spread betting is not for those who do not have money to lose. Unlike conventional betting, there is no fixed bet where you know exactly how much you will lose if you punt does not win. Even worse, if you do not put stop losses in place, your losses can be unlimited.

 

Relevent articles of interest:

>>> An explanation of what spread betting in and what it involves
>>> The basic rules of spread betting
>>> What are the advantages of spread betting?
>>> What are the disadvantages of spread betting?
>>> How to find the best online spread betting company

Other articles that you may find interesting:

Buying and selling shares on the stock market
Investment opportunities
Day trading
Premium bonds
Premium bonds
Investing in property
Alternative investments

You'll also find many articles on investments, plus the latest news on stocks and shares, share trading and online brokers.

>>> How to buy and sell stocks and shares		>>> Types of investments

>>> Online day trading		>>> Spread betting