Financial Spread Betting Explained
Financial spread betting
explained in an easy to understand way. Learn how to
consistently make money from trading and investing in the financial
markets through financial spread trading.
spread betting accounts can offer individuals access to
trading, to go long or short in a wide
variety of markets, with no brokers fees or dealing costs and currently
here in the UK, any profits are tax free. The 'betting' status means
that financial spread bets are categgorised as gambling and as such,
there is no income tax or capital gains tax to be paid on any profits
gained from this form of trading. These key advantages can mount up to
substantial saving over an equivalent trade through traditional
trading. More about the Advantages of spread betting
It is important to bear in mind that this means that losses
can not be offset against other gains for tax purposes and Tax Law can
change and may differ
in other jurisdictions outside the UK.
of online spread betting explained
is quite straight forward really, in spread trading, you
actually purchase the underlying investments, you are simply
position on whether that market will rise or fall. If you
correctly that that a market will rise, you win your stake multiplied
by the number of points that it moves in your favor. If the market
moves against you, you lose your stake multiplied by the number of
points it moves against you.
A spread bet
of £1 per point is the equivalent of buying 100
stockbroker. If you placed a £10 buy trade on Bp you would
not own any
shares in Bp, but if the share price rises by say 50 points, you win
£10 x 50 = £500 profit. In exactly the same
way, if prices dropped by
50 points, you would lose £10 x 50 = £500
Spread betting and CFD trading carry a high level
of risk to your capital and can result in losses that exceed your
initial deposit. They may not be suitable for everyone, so please
ensure that you fully understand the risks involved.
Spread betting explained -
leverage, margin or gearing is one of the key features of financial
spreadtrading that should be utilized to the traders benefit, but if
the associated risks are not respected it can lead to some pretty
disastrous results. Leverage, margin and gearing - these are all terms
for the same process where you are only required to deposit a
percentage of the total value of the trade.
Status of financial spread betting explained
In the UK, financial spreadbetting
legal and fully regulated by the FSA. Spread betting in many EURO
countries is a perfectly legitimate form of investment as it is in may
other countries such as Canada. Financial
spread betting in USA
is not legal due to it being classed as online gambling there. Please check out the current
regulations where you are to see if you can take advantage of the
Summary of the
key Advantages of
free trading **Tax Law can change and may differ
in other jurisdictions outside the UK
commission or brokers fees
long or short
your portfolio against falling markets
online or by telephone
range of markets available from one account
stop losses and limit orders
in your preferred currency
by the FSA
Financial Spread Betting explained
trading has risk involved with it, but spread trading does have has
some additional risks associated with it. Risks of financial spread betting explained...
makes it essential to manage risk properly when spread trading as
can not simply close your eyes and forget about a losing trade in the
prices will rise again eventually. Traders Day Trading
- strategy is to control the risk anytime we take a trade, and it is
risk control that makes the difference between what we do and what the
punters so down at the book makers.
you do not actually own the underlying assets.
is involved, which means that you can lose more than your original
investment. Profits are magnified when you get it right, but the flip
side of that is that it also means your losses can escalate rapidly
when it goes against you.
Risk control is without a doubt, the key to successful
trading. Read more about this in the Position size and
Money Management trading strategies sections.
get started and where to spread bet
do you need to get
started? Online spread
betting has many advantages
telephone dealing, so basically all you will need is a computer, some
trading funds to open an account with, and a little bit of knowledge of
course.....thats where we come in and what the Traders Day Trading
website is all about.
Learn more on how to start spread
betting explained in
more detail. How
to Start Online Spread Betting
Financial Services Complaints
you have a complaint or feel that you have been unfairly treated by a
services company, the first thing you should do is to
the company you have a dispute with and officially report your
You should keep a complete record of events as they
occur, including phone calls, dates, times and names of the people you
If your dispute is not resolved quickly then
you should consider writing a formal letter of complaint to the company
detailing events as you see them.
If you have done these
initial attempts to resolve any issues but feel that it has not been
resolved to your satisfaction, you can complain to the Financial Ombudsman
for an independent view, but this must be done within 6 months of the
last response from the financial services company involved.
10 part stock market beginners trading course. This trading course
offers an introduction to understanding how the financial markets work
and how to trade successfully.
comes from not knowing what you
Tax Free Trading in the UK*
What is spread betting (spread
and how does it work? Learn about the many advantages of
financial spread betting and find out where you can spread bet.