Financial Spread Betting Explained
To help anyone new get acquainted with the basics of financial spread betting, here is a brief explanation plus links to information on the next steps to take.
Financial spread betting is a method of profiting from the movements of shares, currencies, stock markets, commodities or just about any financial instrument you can think of. The way you do this is by making an agreement with a stockbroker or spread betting company that if a share price moves a certain amount they will pay you; but if it moves in the opposite direction, you pay them.
You often see financial spread betting explained by comparing it to regular betting. With spread betting you make a bet on the share price in much the same way you would bet on a sporting event: i.e. you bet the number of £s per point you wish to collect should it go up and likewise this is what you lose should it go down. Spread bets generally expire at the end of the day so if you don’t call the bet off before the end of the day the winnings are calculated when the markets close.
Financial spread betting explanation guides
In order to help explain financial spread betting to newbies we have put together a number of guides. As the site develops more guides and tutorials will be added so keep an eye on the page.
Financial spread betting for beginners
This is the first step to get you started. The article takes you through the concepts and jargon. It gives an outline of the advangages of spread betting over other forms of financial trading.
Financial spread betting tutorial
Now that you understand the principles you’re ready for your first tutorial. This article takes you through the steps required to make a trade or bet: from how to decide what to bet on to actually placing your order. You will learn how to calculate your stops and limit orders.
Spread betting demo accounts
Once you have learned how to make a bet the next stage is to try making your own trades with a demo account. Find out how to start up a simmulator account to start betting with pretend money.
Strategies and techniques
This will give you some guidance on what tactics are successful in financial spread betting and what strategies to avoid.
Happy reading!
