Financial spread betting is a way of trading that has many advantages
. As with anything in life there are also some disadvantages and I will talk about these as well. I hope to give you a balance view of financial spread betting so that you can decide if it is something that you want to pursue.
Financial spread betting has been around for a while. In fact it has been around from the 1970s but has only really got popular in the last few years. It is actually defined as betting which means that in the UK you don't have to pay tax on any of your profits.
Have you ever wanted to play the currency markets but were unable to open a Forex account because of the capital requirements? Well you can play the Forex market from your financial spread betting account. This is great because you are able to trade Forex cheaper with the additional benefits.
Not only can you bet against currencies, you can also bet in a vast number of markets. You can bet on stocks, interest rates, indices, commodities and the list is almost endless. Better still you can do it all from the same financial spread betting account.
Leverage is also key in financial spread betting. Being able to trade on a margin can be very profitable for some. For others though this does cause problems. They become out of control with no proper risk management. This is something that you should fully understand before you start.
I hope that this has given you some insights into the world of financial spread betting. I do hope that you have enjoyed reading and are more aware of the benefits and pitfalls involved. Make sure that you are fully comfortable with the risk before you start trading.