Trading News Feed | Trader Hideout

The charges against Matt Le Tissier for fixing a spread bet have been dropped by Hampshire Police. The Police and the Crown Prosecution service have said that pursuing the allegations would not be in the public’s best interests.

Starting out in spread betting can be daunting. And when real money becomes involved in anything, it’s a risky business.

To become involved in spread betting you do not need to have a lot of money to put up. This is one of the common misconceptions about spread betting. Spread betting does not require you to put all the money up front for the commodity that you might be trading on.

Spread betting is when you wager an amount of money on the outcome of an event, or bet that the price of something will change. The purpose of spread betting is to allow an individual to bet that something will go either way.  You don’t necessarily have to bet against the favourite team winning a football match. You can choose to go with the underdogs and still have a chance of winning a large amount of money.

Spread betting can vary hugely. You can bet on almost anything from sports to politics and house prices. The rewards can be huge. But as with any sort of betting, there is a risk and you need to be clued up on it before you begin.

Spread betting or spread trading as it is sometimes know was developed by a man called Stewart Wheeler in 1975.

Spread betting is a form of gambling. You are taking an element of risk by betting on the chance of the price of a commodity going up or down. Although normally betting and gambling on the stock market involves a high amount of risk and you can lose a huge amount of money in one go. Spread betting has a system which prevents you from making huge loses but can also prevent you from making as much money like if you were trading shares on the stock markets.

For those involved with spread trading or spread betting as it is more commonly known, there is money to be gained from taking part in this industry.

There are also major risks, but spread betting has been a major growth market in the UK over recent years. At the last count, the number of spread traders is now heading towards one million. But, what are the possible reasons for this?

Stop-losses are vital with financial spread betting if you want to control the level of risk you are making on any particular spread bet. If you put an appropriate stop-loss in place, this can be a simple and economically efficient way of playing the market on a short-term basis.