FTSE Spread Betting: Information About Another Way To Trade
The UK Chancellor has just announced the emergency budget and there are a few surprises in there. I look at the financial markets and they are down quite a bit. This is bad news for most people because they will lose money. There is a way of making money when the market falls and that is through FTSE spread betting.
The vast majority of people don't know what FTSE spread betting is or how to do it. It is different to owning actual stocks because you make a bet of the direction of the market. If you think the market will go up you go long, and if you think the market will fall you go short.
You can bet in a couple of different ways and you should choose one that suits your personality. The first style is called a binary bet. You decide how much that you want to stake and then when the markets close you will see how much you have won or lost.
There is an alternative way of FTSE spread betting and that is through the daily bet or the rolling daily bets. The most significant difference between the two is unlike with the binary bet the amount you can win or lose isn't fixed. With the binary bet you win the same amount no matter if you were just right or very right. With the daily bet options you will win a lot more being very right than being just right.
This can be a really great way of trading but if you get it wrong you may end up losing a lot of money. You are actually trading in a leveraged position so you can make a loss that is bigger than your initial deposit.
FTSE spread betting has disadvantages and advantages and it is up to you to decide if it is suitable for you. I did notice the Chancellor did put up capital gains tax but spread betting is currently exempt from that in the UK.
Are you keen on learning more about FTSE spread betting? If your answer is yes then please check out Tom's site. He has combined all of his years of experience to to create a blog that will help you in starting your FTSE spread betting career.
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