Spread betting involves speculating on the direction of a financial asset. That asset could be a share, commodity, index or option. With spread betting you do not actually purchase the financial asset you are speculating on. The spread bet is a derivative of the underlying asset.<\/p>\n
If you correctly predict the movement of the underlying asset then you can profit, similarly, if you are incorrect then you will make a loss. Financial spread bets allow you the opportunity to make a profit\u2013 or loss\u2013 on both up and down movements.<\/p>\n
Spread betting takes its name from the fact that you are quoted two different prices for any given spread bet. These are the price at which you can buy and the price at which you can sell. The difference between the two is known as the spread.<\/p>\n
One difference between spread betting and stock market trading is the absence of commissions. When buying or selling shares online<\/a> or options listed on the stock market through a broker you are charged a commission. This may either be a flat rate or a percentage of the total purchase or sale price. This commission is how a stockbroker earns their income. In contrast, with spread betting the company mainly earns their profit from the spread\u2013 the difference between the buy and the sell price.<\/p>\n To augment your spread betting training<\/a> it is critical that you keep up-to-date with changing conditions in the market. There are economic calendar events that financial spread bettors need to be aware of and keep track of. Not only must the spread bettor know what announcements are important, but also what impact these will have. Announcements from the world\u2019s largest economy \u2013 the US \u2013 such as average weekly jobless claims, building permits and manufacturer\u2019s orders are all leading indicators which may signal the future direction of financial markets.<\/p>\n In Ari Kiev’s book ‘Trading To Win’ he highlights the critical importance of having access to the latest information: ‘To be a super-trader, you’ll need an edge to overcome the laws of probability and the uncertainty of the marketplace. That edge comes from information flow, the ability to correct your habits in terms of the market’s characteristics.\u2019<\/p>\n The spread bettor should also make use of spread betting training resources and educational material. There is a wealth of free resources available on the internet that the spread bettor can use to become educated in how to profit from these financial instruments. As with many endeavours, failing to prepare with spread betting, is simply preparing to fail.<\/p>\n <\/p>\n What Is Financial Spread Betting? Spread betting involves speculating on the direction of a financial asset. That asset could be a share, commodity, index or option. With spread betting you do not actually purchase the financial asset you are speculating on. The spread bet is…<\/p>\n","protected":false},"author":3,"featured_media":1872,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments"],"acf":[],"yoast_head":"\nAdvantages Of Spread Betting<\/h2>\n
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The Importance Of Keeping Up-To-Date With Key Financial Indicators<\/h2>\n
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