Spread Betting is a tool that allows traders to make money from both up and down moves on a liberal variety of financial markets, whether stock indexes, exclusive shares, currencies, bonds, and commodities such as copper or commodities. Spread betting is a term used to describe many and various types of wagering on the outcome of an event, where the pay-off is based on the flawlessness of the wager, rather than a simple binary outcome (win or loss).
Spread betting is free of tax, cost equal to alternative to standard stock market trading. One of the down sides of spread betting is that it is simple to get wrong the risks and costs. While certainly not for the foolish or comprehensively inexperienced, spread betting is an extremely flexible, cost efficient and user-friendly way to gain entry to the biggest games in town. The other important feature of spread betting is that trades can be closed at any time, and never have to be left to expire. And because, as a margin product, traders could potentially lose a different of their initial stake, spread betting is recommended for use only by professionals, day traders and professional investors. While funds can be made and can be substantial, spread betting is highly speculative and losses can be comprehensive.
Just like any other form of gambling, however, spread betting is not for all, and spread betting should be played in moderation. One fascinating aspect to spread betting is that you can decide whether you want to explore the financial world of spread betting or whether you would rather bet on one of many much acclaimed sports. Unlike fixed odds betting the amount won or lost can be very large, as there is no single gamble to constrict the maximum losses. Spread betting on politics and sport is gambling, simple as.
Financial spread betting can be very complicated and players who normally bet in this way are quite prepared to lose big sums as well as win them. The “spread” in the phrase financial spread betting refers to the Sell (Bid) and Buy (Offer) price quoted by a financial spread betting company. This price is worked out by adding additional points around the live (or the estimated future) market price of a financial product. One of the most obvious advantages of financial spread betting is the unique opportunity to go short of (or sell) a stock or share. Competent investors use financial spread betting as an extra trading tool as the spreads offered rival the prices on hand in the real market. Many of the main Spread Betting sites offer guides and recourses to benefit players who may be slightly intimidated by the world of financial trading.
Sports Spread Betting allows gamblers the opportunity to place bets on just about anything with the result of a sporting encounter merely being one of a number of betting opportunities. 20 years ago, make-up, supremacy and mid-point was a foreign language to most sports traders. If you already bet in a selected sport of your choice, spread betting can add an extra angle for you.
Spread betting is simply a matter of deciding whether the outcome of an event will be higher or lower than the spread firms quote and for how much per point you are prepared to gamble. You can lose and win a lot more than your initial gamble and for that reason spread betting is actually illegal across most of the world. A key risk of spread betting is that if a spread bet position moves against you, the bettor, you can incur additional liabilities far in excess of your initial margin deposit. As a newcomer to trading, spread betting could appear to be a very attractive way of entering the markets; but before you jump in feet maiden, it’s essential to understand what spread betting is and how it works or you might as well throw your your cash out the window!