Home | Arts | Glass Art
Spread betting is a way in which you can make money from the financial markets, without having to actually own any shares, stocks or bonds. You can bet on virtually anything, including entire share indexes such as the Dow Jones or the FT100. Spread betting is a particularly attractive way to invest, as any money that you earn by betting is not subject to capital gains tax, as no actual shares, bonds, or commodities are traded. The process of spread betting is relatively simple to understand. Basically, what you have to do is estimate whether a financial instrument will go up or down, and bet a certain amount of money on the outcome. The difference between the buying and selling price, multiplied by the amount that you have bet on each point, will determine the amount of money that you lose or make. For example, if you bet two pounds per point on a share that then rises in value by ten points, you would make twenty pounds. Similarly, if the share fell by ten points you would lose twenty pounds. One advantage of spread betting is that you can make money from falling markets as well as rising ones. For example, if you think that a financial market is set to rise, then you would buy the product with an aim to sell it at a higher price, a process that is known as going long. Going short is a process that you might consider if you anticipate a falling market, in which you sell at a high price with the aim of buying back at a cheaper price. Another advantage of spread betting is that your investments are leveraged, which means that you do not have to pay for the full value of the trade, as you would if you were buying the stocks for real through a stockbroker.
Article Source: http://www.casinoarticlessite.com
Cierra Olshefski is an expert in personal finance and this article was inspired by CMC Markets, a company which offers innovative spread betting solutions.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
