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The Ups and Downs of Spread-Betting – Popular in Day Trading

The Ups and Downs of Spread-Betting – Popular in Day Trading

Many probably don’t know exactly what spread betting is. It is a type of wagering on the outcome of any event, where the pay-off is based on the accuracy of the wager, rather than a simple “win or lost” outcome. Spread betting can be a part of many places where betting is done. But this article is on the financial market.

Spread Betting In Day Trading

Betting this way is becoming more and more popular as a tool in day trading. When there is uncertainty in the markets, there are lots of chances to try something new. For many these swings that are wide in the market make trading life full of problems especially with investors who are long-term. But with a shorter term trader the high uncertainty of recent months has formed ample ways for them to profit from these markets. More and more people love this method of trading – especially when they learn that they can trade from home and don’t need to be at a hedge fund or get help from a stockbroker. If you need more information go to

Difference in Buy and Sell Price

The spread is the difference between the price you can buy at and price you can sell at. You buy at the higher price if you think the market will rise (go long) or sell at the lower if you think the market will fall (go short). The tighter the spread is, the smaller the market has to move for you to make a profit.

Spread bet can be on:

  • Stock market indices
  • Individual shares
  • Commodities – such as gold, silver or soft commodities like wheat, cattle, etc.

Many Ways to Make Money/or Lose With Spread Betting

Spread betting gives many options for a simple, tax-free way of trading in financial markets, whether anyone has traded before or not. But, it is vital to really understand that when trading spread bets you may lose more than your initial deposit or margin was. Spread betting in this regard is quickly beginning to become one of the more stimulating methods of gambling on the stock markets and making money. It is a way of speculation that has something to offer everyone from day traders to swing and position traders.

Works Well In Any Trading Plan

Simple, flexible, and cheap spread-betting fits into any trading plan that a person might presently uses or wishes to use. With the ability to go short or long in rising and falling markets and the ability of magnifying profits, as well as losses, spread bets are a great addition to any experienced investor’s portfolio.

More Are Trading With Spread Betting

It is a fact that every increasing numbers of individuals are starting to trade using spread-betting as there is not any commission or taxes. It is just easy and quick to open an account only requiring very small amount of money, offers leverage and lets you trade in very small amounts across a wide range of markets.

Courses to Learn More

There are many trading courses on spread-betting – that is assuming that you have no prior experience of spread trading. You can be a true beginner and it won’t be a problem. There is no need to have any knowledge or experience.

About Subodh Tandon

Subodh is a full time marketing consultant and a skilled blogger. His area of interest belongs to marketing and finance related news and love to share all of those topics over the internet. You can catch him directly through this blog.