I’ve been investing in the stock market for a number of years. My portfolio ranges from tech companies right through to soft drinks manufacturers. I’ve also get several investment tied up with mutual funds which grow steadily in the background. I hadn’t heard of financial spread trading until fairly recently and I thought I’d give it a go. Being a UK stock market investor I’m allowed to bet on what I think will happen in the markets. If I expect stocks are going to rise I can place a bet predicting this. I can also do the same if I think a stock is going to go down and that is the essence of financial spread trading.

The way bets are placed works by using a points system and this is where the notion of a spread comes in. At the start of the bet you make your mind as to how much money you’re going to risk on each point. This can start from a really small amount up to large sums it really depends on the company you use to place the bet. Bet’s also come in a variety of formats. There is the daily bet which is exactly as it sounds. You place money on a stock price going up or down and depending on the outcome at the end of the day you might just get a tidy sum of money back. Rolling bet’s are quite similar although they will roll on to the next day. The company you place the bet with may charge more money for this type of transaction so make sure you read the small print before betting. Finally there is the contract month bet which can last anything up to three months in advance. This might be a good place to start if you’re new to buying stocks as it gives you a little bit of time for the stocks to come up or down in price.

The great thing is you can bet all lots of other types of commodities such as currency. You can also bet on indexes such as the FTSE 100.

Related posts:

  1. Advantages Of Spread Betting

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