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Flexibility in financial spread betting

Written by Trader Hideout Editor   
Monday, 14 September 2009 12:38

There are two main advantages when it comes to spread betting. The first being that there is no capital gains tax on any of the profits you might make from spread betting and the second advantage is that you can spread bet using smaller amounts of money in comparison to other types of betting or trading.


The flexibility that is offered in terms of spread betting is on the size of the exposure you choose to take. The larger the exposure you have, the more money you are likely win or lose. However, this can be monitored and maintained by ensuring that you have a sensible and suitable budget in which to spread bet from.  If you are new to spread betting, take small risks and make small stakes to start with so you get to know the market without too much risk. With time you can increase your bets in order to make more money.


Spread betting allows you to only have to put up a small percentage of the stock’s worth. This is typically 10% but it varies from market to market. This way you are not risking all of your capital.

 

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