Think About FTSE Spread Betting
In the last month we have started to see the stock market become volatile again. This is due to the fears of a double dip recession. We have seen the FTSE 100 down 1% one day then up 1.5% the next. If you are an investor with only long positions then this is probably frustrating.
If you are one of those investors that just have long positions then what can you do? Too many people have written that buy and hold strategies are dead for me to believe that to be true. I do feel that you should be looking to benefit from this volatility and one way to do that is through FTSE spread betting.
So what is FTSE spread betting? Well it is a way of trading the FTSE 100. You don't own shares as such but you place a stake per point move. If the market moves in your favour then you will make a profit. If the market moves against you then you will make a loss.
The use of FTSE spread betting has many benefits. Firstly you can go long or short. This means that you can make a profit even when the market is falling. It may take a while for a beginner to fully understand this but it means that you have the ability to make profits when the majority of people are making losses.
If you are making enough profits to be paying capital gains tax on your other investments then there is another reasons why FTSE spread betting might appeal to you. You don't have to pay taxes in the UK on your profits and it doesn't matter how much you make.
The final thing I will cover can be seen as both an advantage and a disadvantage...you trade on a margin. This means that you are using leverage. This is great when you are making profits but can be devastating when you make losses.
If you are comfortable and understand the risks then FTSE spread betting can be great for some people. It is not for everyone so make sure that you do your research before starting.
Are you keen on finding out 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 put a website together that will provide you with the resources you need in beginning your FTSE spread betting career.
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