What is Spread Betting?
Over the last few years, Financial Spread Betting has become increasingly popular amongst a wide audience of active traders for a very simple reason. It gives access to windows of opportunities and benefits that traditional routes to the markets have denied them.
Traditionally, trading can be a highly complex affair if you want the flexibility to trade various instruments, in numerous countries and in various markets. It means dealing with a wide number of different financial institutions, working with multiple accounts and operating with diverse currencies. Perhaps most importantly, the time lag imposed by trading through intermediaries makes it difficult to take advantage of opportunities in real time - a real problem for those who want to react quickly to changes.
Financial Spread Betting, however, gives access to markets, instruments, real time trading and more, letting the whole world trade. When the markets move, so can you.
Whether you're new to Financial Spread Betting or are already familiar with the concepts behind it, our website aims to give you all of the information you need to help you make the most of the market opportunities you identify.
HOW DOES IT WORK?
Financial Spread Betting can appear confusing but it's actually quite simple to understand. For example on a fictitious company, ABC Ltd, of 371p-372p. If you think the price is going to go up you buy at the higher price and if you think the share price will go down you sell at the lower price.
In Financial Spread Betting, you do not physically purchase a number of shares. Instead, you decide how much money you would like to bet per penny or point movement of the market you have chosen to trade. The world's markets move in many different increments which is why we have some useful market information sheets to assist you with deciding on how much you wish to bet on each market
Trading on margin
Financial Spread Betting is a form of margin trading. As an account holder at ETX Capital you are only required to deposit a fraction of the actual cost of a trade in advance, typically 2-10% of its value. The rest can be left in the bank or used as capital elsewhere leaving you exposed to 100% of the price movement at a significantly lower initial outlay.
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