Buy and sell shares through a stockbroker is not the only way to play the stock market. Spread betting allows you to gamble on the movement of the index, such as the FTSE100, or in individual stock prices.
bet you the price quote for a specific date in the future and you are betting on whether the current stock price or index will be higher or lower. You can also gamble on the exchange rate and commodities. You may check out bets10 to more about the world’s leading online betting sports.
Financial Spread of betting began in 1970 when investors want to speculate on the price of gold without having to find huge amounts of money to buy the metal.
As with any form of investment, it is important to be aware of the risks associated with spread betting. volatile market conditions can bring profit or loss is quite large, so the betting advises their clients to speculate only with money that they can afford to lose.
Whether spread betting is right for you? And what are the important points to consider?
What is spread betting and how does it work?
You call a bet and ask for a quote on a specific index or stock. For example, you can ask the FTSE 100 in June. You will then cite the spread of, say, 6,870 to 6,880. If you think the market will be lower, your selling points. If you think it will be higher you buy points. You then bet anything upwards of Pounds 2 points. If the market closed at 7100 and you have to buy in Pounds 5 points, you will win 1,100 Pounds. If it was closed in 6800 you will lose 350 Pounds.
What are the advantages of the bets have overstocks?
You do not pay taxes on any winnings and no broker’s fees or stamp duty.
You can also spread bet on shares that have not floated, such as the Internet company.
What can I bet on other than shares?
You can speculate on anything from sports to politics. There are different kinds of bets that are innovative, such as the number of corners in a football game or the number of days that William Hague will remain the leader of the Conservative party.