Financial markets spread betting
Out of all the sports, it is golf that
offers those with in-depth knowledge about form a real
opportunity to beat the For individuals wishing to play
the financial spread markets, the two companies IG index
and City Index offer an invaluable service. Without
them, a broker would be required, meaning commission
and taxes.
Speculation on these markets is regarded as the institutional
and respectable face of gambling. As such, the laws
relating to the opening of accounts are more stringent
than those governing sports betting accounts.
In addition to being able to provide proof of at least
£5000 in liquid funds, clients are asked to provide
evidence of experience in dealing with this type of
market. Spread companies, by law, must ensure that clients
are able to meet their debts should the worst happen.
If even one serious debtor is unable to level to their
account, it can spell disaster for the spread companies
as seen in the financial crash of 1997.
Betting on the financial markets is very similar in
essence to sports spread betting. A spread is offered
on one of the financial markets. If you believe that
the market will rise higher than the buy level, then
you would go higher. If you think that the market will
fall below the sell level, then you would go lower.
As with sports spread betting, you win or lose the difference
between the make-up point of the market and the level
at which you bought or sold, multiplied by the stake
per point.
Again, the same options are open to spread gamblers
with the financial markets as with the sports markets,
in terms of trading in running, using close out and
stop loss or limit order strategies.
Financial spread betting is available on an increasingly
wide range of markets including the daily and quarterly
FTSE 100 levels, currency futures, government bonds,
interest rates, commodities, housing markets and many
other indices.
In many respects it is more difficult to beat the spread
companies with financial markets, due to the long establishment
of the UK investment industry. With masses of economic,
financial and company research only available to those
with the money to buy it and the resources to digest
it, the companies are at a stronger starting point than
in a chance based game. The only circumstances where
this is not the case is where you can match or better
their knowledge level on a particular subject, meaning
the specialist markets offer a more realistic chance
of successful trading than say, the FTSE 100 index.
Information that is widely available is much less valuable
than knowledge that only a few people have.
Financial markets do not always have the same upper
and lower ceilings as in sport, meaning the potential
gains and losses are that much bigger. And while the
minimum stakes may be less than required to actually
trade in shares or derivatives, they are sufficiently
large to occasionally leave unfortunate losers facing
massive potential losses – probably enough reason
for most people reading this site to leave them well
alone.
http://www.financial-spread-betting.com
Spread Betting
Financial spread betting guide with news, reviews, tips
and a daily
commentary from a spread betting guru
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