Spread Betting: Learn to Spread Trade

Go long on oil? Short the FTSE? Whatever your view, take a position with spread trading. Markets rise and fall – and when they do, there are opportunities to exploit which just aren’t available with traditional stocks and shares trading..

Spread betting essentially refers to the act of taking a trade by speculating on the future movement of a financial asset. Trades are made on margin meaning that clients only have to deposit a fraction of the total market exposure; in other words with spread trading clients are trading in leveraged instruments on the financial markets. You can also go long or short on market prices, making it possible to profit even when prices are falling. If you believe that the asset; say a share, will rise, you go long [i.e. buy]. In the event that you are correct and the market moves in the direction you anticipated, you make a gain in line with each point that the market moves in your favour.

Conversely, if you believe that the stock’s price will fall, you sell by taking a short position. Again, if the market moves in the direction of your trade, you make a gain in line with each point that the stock price falls. However, it is important to keep in mind that should a market moves against your position, you could stand to lose an amount exceeding your initial deposit.

Let’s say that you believe the FTSE 100 will rise – you would then go long and buy. Alternatively, if you believe the the FTSE 100 index will fall – you go short and sell. In this scenario, let’s suppose you opened a short position and sold and the FTSE 100 fell, you would stand to gain for each point the market moved in the direction of your trade.

Presently in the United Kingdom, spread betting offers a tax-efficient way of trading the financial markets. And since spread betting is a leveraged trading product, you only need to deposit a small percentage of the total value of the market position you control. This permits spread bettors to amplify their gains, but can also magnify losses which can exceed the initial deposit.

‘In this ‘quick start’ course you’ll discover the simplest way to target winners, ring fence losers, and manage your precious funds so your trading account stay healthy and you are always ready to catch the best movers.’

I hope to guide you into forming such a plan or style with this guide; one which is unique to you. I do not believe there is a ‘system’ out there that offers anyone a ‘guaranteed’ way to make profits. You have to discover yourself what can work for you. When you find it, you should exploit it for all its worth if you wish to take worthwhile profits from your trading.

What is Spread Trading? Spread Betting Explained

What Do We Actually Bet On As Spread Betters/Traders?

The Pros and Cons of Spread Trading

What is the Spread?

Is Spread Betting Really Tax-Free?

Risks to Consider

CFDs versus Spread Betting

Risk and Stop Losses

Common Spread Trading Mistakes to Avoid

Opening a Trading Account

We also publish our full ‘Financial Trading Guide, Rules, Tips and Tricks’ which is a great way to get started quickly with lots of great advice and important facts and things you should know before you start. You can’t afford not to have it – read it before every trade! BUY OUR FULL GUIDE NOW CLICK HERE!

Practice spread trading: Some providers also offer simulated spread trading accounts that give the investor a good taste of a real time environment without risking any money. It is a good way to test your strategies, educate yourself on the product and test the online platform. To open a simulated account, visit this link.

Learn spread betting – how to spread bet – how to spread trade – Learn to trade the markets.