Online Spread Trading

Online Spread Trading – another name for Financial Spread Betting

Do you invest in shares? Not directly, although I have become very interested in financial spread trading. Like a lot of people I’m growing tired of “experts” managing funds which have lost so much money over the past few years. I have recently read some great books on investing and spread betting and am looking forward to the day when I can successfully look after my investments knowing that if anything goes wrong it’ll be my fault, not the fund managers who took a percentage of the initial investment in the form of fees and still lost money.

Spread Trading or Spread Betting (the two terms mean the same thing) is undoubtedly the best way to trade the world financial markets. Spread trading works by reflecting the actions of financial stock indices, commodities, currencies…etc Stock Indices are a composite of individual shares. Examples of Stock Indices are FTSE, Dow (Wall Street), NASDAQ, S&P. Some examples of currencies are the Pound, Euro and the US Dollar. Commodities include Gold, Silver, Oil, Wheat, Sugar, etc. These are all separate individual markets.

Traders have an opportunity to take advantage of volatility in the markets and trading continues to experience a boom. Spread trading involves the trader or investor betting on whether the price of a financial instrument will move below or above the range. Spread betting providers provide access to trading on currencies, shares, treasuries, indices and bonds. The difference between the quoted buy price and sell price is referred to as the spread.

I think it has been recognised for many years that something like 60% of all trading daily in London is leveraged. Spread betting allows you to leverage or gear your exposure – i.e. bet more than the capital on hand. Leveraging provides a great way to magnify your profits, but leveraging also works in reverse and may also magnifiy losses, so beware of excessive usage of leverage. The key to making the really big money from spread trading is knowing which direction the market; example the FTSE 100 and Dow (Wall Street) is going to move. If you buy and the market rises you generate a profit. If you sell and the market drops then you make a profit. Therefore you can make money on spread trading by correctly predicting the market to go downwards as well as upwards. When we refer to the market, we mean any individual market you happen to be trading at the time.

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Trade Sensibly. Please note that between 74-89% of retail investor accounts lose money when trading CFDs, forex, and spread betting.

I compared the different information about the accounts, trading platforms and financial products against my requirements for betting and then chose one. I was looking for a firm that would provide tight spreads (1 pip preferably), a low initial margin for the markets I was wanting to bet (to fit in with my initial betting bank) and an easy to use betting platform. I was concerned about using the betting platforms for the first time but most firms allow you to open a demo account where you can trade with “virtual money”. This was invaluable in helping me to get used to the betting mechanism and making sure that I knew what I was doing before I started making real bets. I played around with this for some time before I used the system in anger.

Why Spread Trading is Becoming Increasingly Popular?

Spread trading keeps gaining in popularity in Europe, particularly in the United Kingdom. The internet has broken up the accessibility barriers and pretty much anyone now can have access to a sophisticated spread trading platform that incorporates streaming news, interactive charts and instant dealing. Financial spread betting under these conditions is ideal since the trading instrument adapts well to shorter-term dealing strategies and traders can access a wide range of instruments from a single account. So, private traders and investors can now follow the stock markets and take advantage of opportunities just like traders within financial institutions.

Spread trading is both simple and tax-free (tax laws can change). It allows you to place both up bets and down bets, which means that you can make money whether the market is rising or falling. A further advantage of spread trading is that it can be done online, in real-time. You can also use the successful and profitable City Trader’s techniques we teach you to trade shares. However, we recommend that you trade financial indices, currencies, oil and commodity markets. This is because by spread trading you can make money as the markets move both up and down, thereby maximising your profits. In this way you have more trading opportunities to make money than with trading shares, where you can only make money if shares are going upwards.

As if you buy shares in a company, you also have to deal with other factors that can affect shares price, but which are irrelevant in spread trading, for example, bad company management and inefficient company organization and structure.

Spread trading also offers advantages over conventional betting such as fixed odds betting, because amongst other things, you can decide to close your bet at any time you choose. Of course, this option is not available to you in fixed odds betting, because for instance you cannot close your bet in the middle of the race or match, if your horse or team happens to be leading and take your profits. Spread trading also offers advantages over for example, buying to let property. This is because property prices are already too high for an real significant profits to be made. If you add to this negative equity resulting from interest rate increases, then buying-to-let property quickly loses its appear as an attractive proposition.

We live in times of increasing financial constraints and the majority of people face job insecurity and unemployment. Globalisation has meant that a lot of jobs are going abroad. We have found trading to be the best solution to attaining financial independence.

Whatever you do make sure that know what you are doing – because these are leveraged products there is the potential to incur a larger-than-expected loss quite quickly in volatile markets. In particular, make sure that your spread trading education is up to par!

Trading the Financial Markets


Instead of going all the way to the bank (or even doing it online) now you can buy a virtual stock or product and bet on whether it will go up (long) or down (short). Yes! You can make money even if the value of your share is down, and the best thing about it which attracts more and more people is the fact that it’s tax free!

You can trade and place your bets on the spreads of oil, gas, currency exchange (forex), stocks and just about anything with a value.

There’s a risk though, you can lose … but you can also lose investing the full value of a share money in the bank, especially in days like these when the financial crisis roars and the stock exchange market is in a very bad period. The best thing is that all online spread trading activities are free of tax in the UK and legal for the residents.

It costs merely nothing, heck, you can place a bet of as low as 10 GBP and turn it into 500 GBP in less than 10 minutes, and that’s not all, you can limit your losses and get out when ever you want.

That’s the basics of Spread betting. Personally, i don’t see why one should keep dealing with online casinos or sports betting or even forex when you have spread trading. It’s much better! Keep reading this website you’ll sure to find tips and advice on how to trade wisely as well as where to trade online spread.

Good luck and happy trading!