Why Financial Spread Betting is Bucking the Economic TrendMonday, February 25, 2013 Mary Anne Velasco
Despite falling market prices and economic slumps, many traders are using spread betting to continue to make profits. Rather than waiting for markets to improve, savvy traders are simply using spread betting to profit by predicting falling prices and values. By enabling traders to benefit from falling and growing markets, spread betting effectively doubles the opportunity for success and enables traders to profit regardless of whether markets are thriving.
By successfully predicting the rise or fall in market value or share price, traders can quickly make significant profits. In addition to betting on market values or specific share prices, investors can bet on indices and Forex markets as well as sporting events or matches. UK spread betting [http://www.spreadex.com/] offers a more exciting method of betting compared to fixed odds betting and arguably offers more chance to profiting from betting on matches or games. For example, if a football match is likely to be won by the home team, the odds aren’t likely to be particularly favourable. However, by using spread betting rather than fixed odds betting, traders can make considerable profits even if the winning team is relatively easy to predict.
The flexibility ofUK spread betting has resulted in it becoming an increasing popular form of betting or investing. By deciding exactly how much to bet per point, traders can limit any potential losses but make uncapped profits providing they predict the outcome correctly. The use of mobile technology enables traders to monitor bets regularly and abandon bets which are resulting in a loss. Rather than being forced to watch as an investment loses value, with financial spread trading online [http://www.spreadex.com/financials/], traders can merely stop the bet at the first indication of loss. The use of ‘stop losses’ mean that traders can arrange for a bet to stopped if they reach a certain amount of loss. For traders who are unable to monitor bets this means they can still limit losses without restricting potential profits thus giving them greater control over their bets.
Whilst traditional forms of investment are often subject to various taxes should they produce a profit, the profits from spread betting are generally not subject to tax in the UK. As traders are merely betting on the performance of shares or markets, rather than purchasing the share or commodity there is no stamp duty to be paid. Similarly, traders are not required to pay the cost of each share as they aren’t buying the ownership of it. As no purchase or sale transaction is taking place, traders are not required to pay dealers fees or pay any commission to stockbrokers meaning that spread betting is a low cost way of betting on the markets.
The flexibility of spread betting, in addition to the numerous opportunities to make a profit mean that many traders are turning away from traditional forms of investment in favour of spread betting. The access to global markets and minimal betting costs mean that spread betting is a viable way for individuals to profit from changes in the markets and in the economy, regardless of what these changes are.
Spreadex are UK leaders in financial spread betting online. Simply visit their website www.spreadex.com to find out more and get started.