Spread betting is a simple, versatile tool that can help you to profit from both up and downwards movements in prices and offers an alternative to trading on specific stocks and futures markets. Essentially with financial spread betting, you are simply speculating on the direction of the future price movements in an underlying instrument whereby you specify an amount you want to bet on each point movement.
Spread bets are a margined product. In other words, you only deposit a fraction of the overall value of the trade (typically 10%), allowing you to make a much larger potential investment than if you were buying the shares.
However, please note that losses of course are magnified in exactly the same way.
Spread betting is straightforward and profits are free of UK Income tax or Capital Gains tax. However, it requires a realistic assessment of the risk involved: take the time to read through the information on this site and learn how to set up and run your financial spread betting account so that you understand this exciting investment vehicle, including the downs as well as the ups.
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