Spread betting has evolved as a profitable venture and its ability to let individual trade on the entities of their choice is attracting several individual traders from different parts of the world. Spread betting, has not only gained vast recognition in UK but also in the other parts of the world.
So, if you are also planning to indulge yourself in spread betting, it’s important that you first understand that what spread betting actually is.
With spread betting, you actually speculate the movement of the different assets in two directions, profit and loss. Spread betting can be done a broad array of entities, including currency pairs, indices, company stocks and even on the commodities. The best feature of spread betting is that you do not hav to buy any particular assets in order to bet on them.
With spread betting, you need to predict an outcome and the degree to which your determined outcome is right or wrong, decides that what amount of profit or loss you would have. If outcome which you are speculating in the spread betting is in the same direction in which the price of the entity is moving, then you will have the profit. Your profit will depend on the closeness of the amount you predicted and the actual price.
Why should you indulge in “Spread Betting”?
Spread betting is tax free
Since spread betting is classed as a type of gambling, you are not required to pay any taxes on the profits which you make through it.
Round the Clock Availability
Unlike stock markets, the spread betting can be done any time of the day. Certain markets offer round the clock dealings, thus, you can open and close positions, even when the underlying market is shut at that time.
Markets can Be Shorted
As you are placing the bet on the direction of movement of the price of the asset, you can easily take a view on the rising and the falling markets.
Quick Execution
You can open a spread bet account instantly and start betting. What you need to do is pick your market, your bet size and choose whether you want to buy or sell your assets before confirming to open your position.
Wide array of options
For spread betting, there is a broad spectrum of markets available for the betters to bet on and indulge themselves in it.
The margins are small
Spread betting is considered as the leveraged product, which implies that you do not have to put up the entire value of your position for betting. The leverage can enable your investment capital go further, but when the market goes against you, there is a high risk that you can lose more amount than your deposit.
Individual Traders can Easily Place Bets
Spread betting does not require you to represent an organization in order to be able to bet. You, as an individual trader can place the spread bets and start earning profits by rightly speculating the direction of the asset’s price movement.