Financial Trading, Spread Betting, Sports Betting

April 16, 2009


Keith Driscoll asked:

Spread Betting is a tool that allows traders to make money from both up and down moves on a broad divergency of financial markets, whether stock indexes, exclusive shares, currencies, bonds, and commodities such as silver or minerals. Spread betting is a designation used to describe various types of wagering on the result of an event, where the pay-off is based on the precision of the wager, rather than a distinct binary result (win or loss).

Spread betting is free of tax, cost efficient alternative to standard percentage trading. One of the down sides of spread betting is that it is simple to misinterpret the risks and costs. While certainly not for the inept or comprehensively inexperienced, spread betting is an extremely flexible, cost competent 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 really for use only by professionals, day traders and experienced 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 betting, 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 choose whether you want to look into the financial world of spread betting or whether you would rather bet on one of numerous renowned sports. Unlike fixed odds betting the amount won or lost can be very large, as there is no single stake to limit the maximum losses. Spread betting on politics and sport is gambling, pure and simple.


Financial spread betting can be very bewildering and players who usually bet in this way are quite prepared to lose large 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 firm. This price is worked out by adding additional points around the live (or the estimated impending) market price of a financial product. One of the most obvious advantages of financial spread betting is the exclusive chance to go short of (or sell) a stock or dividend. Competent investors use financial spread betting as an additional trading tool as the spreads offered rival the prices on hand in the valid market. Quite a few of the main Spread Betting sites offer guides and recourses to help players who may be slightly daunted by the world of financial trading.


Sports Spread Betting allows traders the chance to place bets on just about anything with the result of a sporting encounter merely being one of a number of betting opportunities. 15 years ago, make-up, supremacy and mid-point was a foreign language to most sports gamblers. 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 stake. You can win and lose a lot more than your initial stake and for that reason spread betting is actually illegal in most countries. A important risk of spread betting is that if a spread bet position moves against you, the bettor, you can incur extra 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 leap in feet earliest, it’s authorized to understand what spread betting is and how it works or you might as well throw your funds straight down the toilet!

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