Casino Gambling Betting

Financial spread betting is becoming a more and more popular way for day traders to make money. This type of financial betting is all about speculating on the movement of markets, and making a profit from either a rise or drop in market prices.

Unlike traditional financial trading, spread betting does not involve the purchasing of an financial assets or instruments. You are simply gambling on the movement in value of a particular indices or commidty price by placing a bet against a bookie.

To place a spread bet, you will first of all need to register to a spread betting platform and open a deposit account. Usually the minimum deposit is around £100. You will then have to select a particular stock or indices to bet on. After you have chosen a particular stock, you will need to ask your financial trader for a “bid” or buy price. This is the market value that the trading company will offer you. If you think the share price of value of that stock will increase, then you can wager a fixed amount on a per points movement basis. For example, you can wager £10 per point on the movement of a stock price. If, when the time comes to close you bet, the stock price has risen 10 points, then you will have made £100 profit. If the stock had dropped 10 points however than you would likewise lose £100.

The “spread” is the difference between the “bid” buy price and the “offer” sell price given to you by the trading platform. The bid price will always be slightly higher than the sell price – this is where the platform takes its commission. For example, if the bid price of Microsoft stock is 156p, than the sell price will be 155p (the spread is 1p).

The main advantage of spread betting is that you are trading on leverage (margins), and as soon you can make a massive amount of profit starting with a small capital reserve. For example, you can make 1,000% profit on trades by betting correctly on movements in the market. In comparison to regular financial share trading, you would never be able to make such massive profit margins without have to purchase a large amount of assets. For example, if you had £10,000 worth of shares trading at 100p each in Microsoft and the value increased by 1p, than you would only make £100 profit. On the other hand, if you spread bet £200 per point on Microsoft shares than you would make twice as much profit from just a £200 investment!

Spread betting in the UK is also tax-free and exempt from stamp duty. This makes it far more profitable than ordinary financial trading.

For more spread betting tips, see my FTSE Spread Betting website.

Ever fancied trying your hand at financial spread betting but haven’t really known what it’s about, or where to get started? In this article we take a very basic look at financial spread betting and ask what it’s all about.

Financial spread betting is a commonly used retail derivative employ to speculate which direction the share price of a stock/commodity/index will take without actually owning or purchasing any of the shares. It is now one of the United Kingdom’s most popular methods of trading, and this is not surprising given that any profits are 100% free from stamp duty and Capital Gains and Income Tax. A spread bet is a contract between the client and spread betting company where the bet is based on an underlying financial instrument. Actual ownership of that financial instrument never takes place.

One of the principle reasons for using this tool is to profit from markets such as stocks and shares, bonds, foreign exchange, and commodities such as crude oil and gold, be they on the UK or international markets. Financial spread betting is a great way for smaller investors to trade without committing to a large financial investment.

Unlike bets in bookmakers, there are no fixed odds in spread betting, but instead a stake is betted (pound s per point) on the direction of the market. If the trader bets that the price will rise, this is called ‘going long’, and if the better predicts the price will fall, this is called ‘going short’. So rather than direct ownership of equities in a company, the trader is betting on which direction he thinks the price will go. Any profit or loss made is determined by the difference in buy and sell (bid and offer) prices.

Another advantage of financial spread betting is that it is also possible to make money if the price falls, unlike the more traditional methods of trading. And making profits here is as simple as making profits in a rising market, it simply depends on how far (how many points) the price has fallen against the price the time the bet is executed.

There are principally two types of spread bets at present. The first is a bet which closes once the markets close, and the second is a bet which will close at the end of a quarterly cycle. Daily spread bets do have expire at the end of each day but for a small ‘interest’ charge you can roll over these bets into the next trading day or trading cycle.

Benefits of financial spread betting include access to most markets 24 hours a day, all markets traded through just one account, and the use of smaller bets. This is attractive for traders who are looking to get in and out of a trade quickly. Another benefit is that there is no commission or fees involved and all of the costs are included in the bid-offer agreement. With financial spread betting your financial products are all in the same place and under the currency of your choice, pound sterling, US dollar, or euro. This saves you the inconvenience and costs involved in exchanging currencies.

As with all trading and investment, there is an element of risk involved and if the market moves in the opposite direction to your bet, you may lose your money. Research your market and only bet what you can realistically afford. Stop-loss facilities are offered by most financial spread betting companies to help you monitor your funds. These facilities are set up to suit your individual financial requirements but they may not be guaranteed and money can still be lost.

Stuart Smith writes extensively on Financial Spread Betting subjects and is the owner of leading website http://www.spreadbettingftse.co.uk

Gambling is actually an illegal activity, yet there are other gambling activities which are considered to be good and lawful. One of which is the Financial Spread Betting and as the name implies, it is all about betting and wagering on the outcome of an event that will be most favorable to you. It is an investment tool which permits traders to invest in the financial markets. The pay-off in the said betting will depend on the accuracy of the bettor. It is one of the easiest to understand investing tool so it appeals to many investors. Its idea is very easy to understand and is straight forward. Also, the tool is not just limited to currencies but has a wider range of markets ranging from stock indices, commodities, individual equities and many others. Aside from easy understanding and a wide range of market coverage, another factor making money spread betting attractive to investors is that it is tax-free. The investor willing to participate in the Financial Spread Betting would only need to provide a Stamp Duty, and he already freely access and receive the betting.

Financial Spread Betting is earning its peak in the UK in recent years. Financial instruments contain mostly of the UK’s kosher market. Like any other form of betting activity, it bears high risks of losing and also winning, so it is still needed to be able to rely on trends and other critical information before venturing on such game of luck. Unlike other gambling activities, it is regulated by Financial Services Authority and not by the Gambling Commission.

Financial Spread Betting started its demise in the 1970 at the City of London. It was all started by a banker by the name of Stuart Wheeler. He started the concept of financial trading with his friends by letting them set the price of gold for the coming week. Wheeler first established a specific selling and buying price and from that his friends hypothesized whether the price of the gold would increase or decrease the next week. This gold offering finally got its popularity attracting several dealers, which lead wheeler, to put up a business naming it Gold Investors Index. The demand for this kind of trading continues to grow that Spread Betting Companies started to grow. Until now, the market is still climbing its peak in many other countries.

As an effective investing tool like IG Index, which first dominated and monopolized the market, now shares its success with others. Capital Spread, Sporting Index, and City index are just some of the known Spread Betting Companies operating in the market. These are regulated by the Financial Service Authority.

With this, Financial Spread Betting had accumulated favorable and unfavorable remarks in the past years. If only this said will be use correctly and appropriately, it is a powerful and efficient trading option that offers upscale and favorable pay-off.

This Article is related to the subject of Financial Spread Betting. If you are looking for Spread Betting Companies then independentinvestor.co.uk is the greatest place for you.

Financial spread betting can be a way of gambling on the stock market without having to own stocks and shares themselves; as such one of the chief advantages that it has over trading is that it can be done any time of the day, whether the markets are open or not. On top of this, spread betting is tax free and often allows you to leverage a great deal more money than you actually put down in the first instance. This works both through the use of margined trading and through the spread itself – let me explain.

Spread betting involves betting on whether you think a stock will rise or fall in value in a given period of time. If you think a share is under priced for instance, you are able to ‘buy’ at a certain number of pounds per point (with shares, a point is equivalent to a penny). So, if you buy at £20 per point and the share goes up by 2p then you just made £40. If it falls by 2p then you just lost £40. It’s fairly simple, but the money can spiral out of control pretty quickly.

As a result, spread betting always involves a certain amount of margined trading. Your margin within financial terms, is in part a deposit that you make in order to cover your potential losses on a trade. This is so that if you place a bet at £20 per point, and the stock falls by ten points, there’s a buffer to ensure that the company is repaid the money that you owe them. With financial spread betting you are usually only required to place 10% of the value of your trade down as a margin.

Usually there will also be a facility called a “stop loss” which stops the bet after you have lost a certain amount of money and a ’stop win’ which does the same after you have made a certain amount of money.

Overall, financial spread betting is a very risky, short-term investment strategy, the main benefit of which being that it is tax free. The main drawback is that you can lose far more than you bet, and that you will need to very carefully manage your position in the market in order to ensure that you do not lose any money. Although risky, one can do well if they study the numerous strategies and master their own techniques.

Begin on your Financial Spread Betting journey today, find strategies by experts in Indices Spread Betting.

Among the many online financial firms you can find, some are just better than the others, some are more recommended by the spreads betting users and some are just bad. When you are trying to search for the best spread betting firm for you, remember it’s not always the same spread firm like other is using. One user is looking for the specific fixtures in the betting firm he is using, it’s not the most important fixtures that you may look for.

The different firms on the internet are looking for you to join them, you can find them all listed on the Spread Betting Portal. The main reason for that is that they want you to place your bets on their spreads and not with some other spread firm. You are betting on spreads for money and they want you do spend your money with them. If you are losing your money or winning more money online with good bets, it doesn’t matter, the name of the game is to make you bet with them.

The run on the internet will get you, if you are a potential user for the firms. You will get some ads in your Email, get into the affiliate websites and blogs, read about it in the upcoming RSS feed or SMS note and see about it in your Twitter. The industry is looking for you and it will find you.

So if you are looking to join the spread betting world, it’s time for you to make the search and locate your favorite firm, open an account and start betting.

David Forey
http://www.SpreadBettingPortal.com