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One of the great attractions to spread betting is that any profit made is completely free of taxes or stamp duty, which means you can effectively use shares, currencies and commodities to make money without the commissions, fees and capital gains taxes usually involved when you actually purchase or sell the assets.

The information contained herein is like gold dust for those who want to learn to spread bet properly and make some serious money from it, because it explains the reason why most spread traders do lose money.

When learning about spread betting, if you read enough, it will not take long to hear the phrase that you should ‘cut your losses short and let your profits run’ and then you will make money. Although this may be one of the most common phrases in spread betting it is certainly not the only one, so here are a few more general rules to help you win in the world of spread betting:

It is surprising that despite spread betting being quite commonplace nowadays and considered a mass market alternative investment strategy, many people have not heard of it.  

When you begin spread betting, each spread bet has an expiry date. Technically speaking, spread betting is betting because you never actually make a purchase of the assets you are spread betting upon. For example, if you are spread betting on shares, you do not purchase the shares themselves and you can even spread bet on sporting events like Wimbledon or the Tour de France as mentioned in previous articles.

Since the onset of the credit crunch, there has been a surge in interest in spread betting in the UK, and other countries where spread betting is commonplace.

When people start to look at spread betting seriously and think they might like to have a go, it can be a very good idea to open an account with a spread trading company who will allow you to run a demo account for a while, otherwise known as ‘paper trading’.

Using a demo account or ‘paper trading’ is an excellent idea, especially for those new to spread betting or spread trading as it is also often referred to as; however, the choice is a personal one.

Perhaps you have run a demo account for a while, read all the references and help guides on the internet and feel you are ready to face spread betting in real life with your own money. But how do you know if you are ready to spread bet with real money?