In this free spread betting course we’ll teach you everything you need to know about derivative products, running you through the key differences between spread betting, traditional stock trading and CFDs. Across these short, easy-to-digest lessons you’ll discover how these types of account work, their key benefits & drawbacks and whether trading through a spread betting account is right for you.
Learn about leveraging, arbitrage, tax-free profits, how to manage market volatility, how to choose the best spread betting broker in the UK and more. We’ll also explain some of the best spread betting strategies you can use to trade with and give you our top 5 tips for successfully trading with a spread betting account.
Across over 20 pages of trading lessons and quizzes, this course will teach you:
- Introduction to Spread Betting
- Understanding Spread Betting
- Spread Betting Platforms
- Benefits and Risks of Spread Betting
Who Is This Course For?
Take this free course if:
- You want to know more about spread betting Forex, stocks, indices and commodities.
- You want to learn about the key differences between a spread betting account, traditional stock trading and CFDs.
- You are looking for a means to escape paying capital gains tax or stamp duty on your trading profits.
- You want to find out how to open a spread betting account and the basic principles of spread betting risk management.
- If, in the future, you’d like to trade for a living, either as a Day Trader, Swing Trader or a combination of both.
- If you’re looking for a career with a better Work Life Balance, a higher quality of life, location options and where you’re the boss or if you’re simply looking for a reliable, recession-proof second-income with which to top-up your monthly salary.
Trading College is a CPD accredited educational organisation. This means the Continuing Professional Development Certification Service has recognised us, as educators, as having reached the required professional standards and benchmarks.
Why Is Spread Betting So Popular?
Using a spread betting account allows you to profit from trading the market but without any of those gains being eligible for paying tax – no capital gains, no income tax, no stamp duty – nothing at all owed to HMRC.
When you invest long-term in shares any profits you make are subject to capital gains tax. With spread betting you never actually own the underlying asset that you’re trading with and, thanks to this, you are also exempt from being charged stamp duty. Receiving an income from trading the markets without paying income tax and therefore being subjected to a 20% (or 40%) pay cut is obviously hugely appealing to most retail traders and big reason behind its popularity in the UK.
With a spread betting account you are able trade on the basis of whether you think the value of shares, commodities, Forex or indices will rise and fall. Unlike traditional investing where you buy and personally hold the asset in the hope that it increases in value, with spread betting you are able to place positions that will earn you trading profit whether the market is buoyant or if it’s tanking.
The 2008 financial crisis, the Credit Crunch, Brexit, the COVID pandemic – the markets have certainly taken some big tumbles in recent years and through a spread betting account you can increase your trading capital, not in spite of, but because of these market crashes. Make money in the bad times as well as the good by building a truly recession-proof income, free of the ‘Boom and Bust” cycle of the national economy.
With a spread betting account your are able to borrow capital from your broker in order to take make your position size larger than your trading balance would allow. Through leveraging your trade you gain full exposure but for the price of just a small initial deposit (the margin).
It is critical to be aware that whilst leveraging your position can greatly magnify your profits, if used recklessly, it can do likewise to your losses. For this reason (and many others) traders should rely on back-tested strategies, effective software and calculated risk management. Never put at risk more than your strategy dictates and certainly not any amount that you cannot afford to lose.
On a similar note, some assets have prices going into the thousands of pounds for just a single unit. Rather than being priced out of the market or having to put a dicey amount of your trading capital at risk to enter a position, with a spread betting account you can buy just a fraction of a high-value stock or commodity and benefit proportionally. This flexibility allows retail traders to take advantages in markets they would otherwise not have access to and means the account caters for budgets of all sizes.
At the end of each module an online assessment is taken whereby you will be asked 10 multiple choice questions with a pass mark of 80%. The answers are marked automatically so you will instantly know whether you have passed and are able to proceed to the next module. If you don’t pass the quiz first time, don’t worry! You can take these tests as many times as you need and even return to them to refresh your knowledge once the entire course has been completed.
Aims Of The Course
Upon completion of this course, you will have:
- Gained a solid understanding of the spread betting; it’s origins, how it works, key terminology and trading platforms.
- Discovered the differences between spread betting, traditional stock trading and CFDs.
- Learned the importance of effective risk management strategies when trading with leverage.
- Read up on arbitrage, spread betting platforms and UK brokers as well as some top spread betting strategies.
- Found out about how to open a spread betting account in the UK and our top 5 tips for successful spread betting.
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