What is spreadbetting? Spread Betting: what is it? According to Cantor Index, "spread betting is a high-risk, high-reward activity offering you access to the world's major financial markets", but what exactly is it, what does it involve and most importantly, what do you need to reap its potentially high rewards? . . . keep reading
What happens if it all goes wrong? Doing your research can mean boosting your chances of success but there will be occasions when you do get it wrong or markets behave unexpectedly. And because financial spread betting is a leveraged product, meaning that your initial deposit exposes you to a larger portion of an underlying market than if you bought the stock or share directly, it can result in losses that exceed that deposit. Effective risk management is therefore crucial towards safeguarding your investments and mitigating any potential losses. Before you begin: golden rules . . . keep reading
Ranges, Momentum and MACD To calculate the trading range, you simply join the peaks and the troughs of the share price history with two parallel lines. The difference in money between the two lines will give you the trading range. The chart above illustrates this well; from mid November 2004 until the end of May 2005 the price movement ranged from 240p to 275p, establishing a pattern that would have supported successful bets. A chart breakout occurs at the end of May, with the price rising to 350p. In this situation, refrain from opening bets until a new pattern has emerged and a trading range established. . . . keep reading
More what is Spread Betting? What is spread betting? The best way to understand spread betting is to contrast it with traditional betting. With traditional betting, you stake money on the outcome of an event at fi . . . keep reading
Margin - You get more for your money When you spread bet you are trading on margin. If the margin for a bet is £10 and the margin rate for that product is 5%, this means you are actually placing a bet worth £20 . . . keep reading
Profits are Tax free Profits are tax free - why? Profits made from spread betting are exempt from capital gains tax (CGT) in the UK. Also, because you are not buying the underlying product, stamp duty will not app . . . keep reading
Traders' Journey
