What sets spread betting apart from conventional investing is that an investor can place a cap on their bet to keep from going over a certain amount. This shield of protection gives many investors an advantage over conventional investing. Spread betting is a very easy form of financial trading that can be carried out by anyone over the age of 18.
London Stock Exchange investors who have been trading and investing for years in the stock market are not the only people who can take advantage of financial gains through spread betting. There are millions of regular people who are taking advantage of untapped markets at a lower and more secure level that keeps them from suffering large losses that most inexperienced investors cannot afford.
Betting on different market accounts gives investors more opportunities to gain more than they are losing. As with any gambling activities potential losses are common knowledge for most gamblers. Gamblers who gamble in casinos can stop gambling at any time after they lose a certain amount of money. Betting on the stock market is very similar in this aspect.
Investors also have the opportunity to cut their losses and take what profit they have gained after closing a bet. Spread betting can also bring many financial gains when an investor places a bet on the likelihood of a certain outcome. If the guess of an outcome is right more than wrong the investor can gain back double the amount of money that they bet.
The opposite can also take place. If the outcome is wrong more than right the investor can lose double the amount that they bet. The investor would need to cover their losses after it goes into the red. When placing a cap on the bet it ensures that the loss of a bet is not more than the investor can safely cover. An example would be that an investor places a bet on the certain outcome of an event.
The event could be at a horse race where the investor believes that the winning horse will win by a certain distance. The investor can place 10 points on the allotted distance. If the winning horse wins within the boundary of the allotted distance the investor can win double the amount that they placed for the bet. If the winning horse goes past the allotted distance the investor could lose double the amount that they bet.