Spread betting has become the most effective way of successful earning. Trading is considered as the right way to earn money and stay in the betting market. However, there is a difference between spread betting and financial betting. Financial spread betting is the most exciting trading method done by traders. In fact, trading companies are offering a great source of options for spread betting. ETX Capital’s financial spread betting option allows the trader to trade safely. Financial betting is one of the fastest growing ways that speculates the movement of share and indexing for investors. Moreover, it is the most cost efficient to trade in ordinary shares.
Let us now check the Advantage of doing Financial Spread Betting:
- There is no stamp duty process involved
- No tax involved in spread betting as it is not subject to capital gains
- No direct commissions or fees involved by spread betting company
- Demo account is offered to conduct spread betting. Opening the single account is highly recommended to traders
- Ability to place small bets and companies allow trader to place bet as low as 1p per point
What can be Traded?
Spread betting isn’t entirely about buying and selling the product, the range can be quite far and greater than underlying shares. The trader can trade bet on:
- Stock market such FTSE or NASDAQ
- Currencies FX
- Futures and options
- Bonds and shares
How does Financial Spread Bet Works?
Generally, spread betting is about betting on future movement of underlying instrument. If you predict the instrument is going to rise, then you will place a buy bet, and if it is going to fall, then sell bet. If you want to close the bet then you need to place an opposite bet on instrument.
Financial spread betting companies allow to trade, not in the fact that stocks or shares will rise in near future. The trader will be provided with all the assistance required by the trader for spread betting on financial stocks. With financial betting, you don’t actually own any kind of commodities, but betting on change in the market. While opting for online spread betting, take your time on researching about the company and the market condition. A reputed UK spread betting company offer all the details about the market condition. Moreover, you’ll be also provided details on tax free gaining and stakes to be bet on. Check out with some the successful spread betting individuals. Make sure you read all the rules and regulations which can differ according to the market condition. Once you’re satisfied and understand the process, you can get the best return.