The winner takes all with spread betting

If spread betting was a losing game then nobody would be doing it. However, if it was all a one way street in favour of the investor, major companies would not be willing to allow themselves to be fleeced. So, if people weren't making money, in some cases, serious money, then there wouldn't be a market for it, a market that is growing at an unbelievable rate.

There have to be winners and losers. How would the concept work if this wasn’t the case? According to current calculations, almost 90% of those who tread into the spread betting markets close their accounts within 3 months and this is thought to be because they enter into spread betting without any real knowledge or plan of what they want out of it. They naively fling their money into anything that appears to be going up or down and foolishly think that when they're losing money that their luck will change so pour more money into it, alternatively they trade in the reverse direction.

There are more sensible ways of what is called 'hedging', but should not be done blindly to recover a loss, this will only result in losing your deposit and feeling that you have been conned. None of this is a con, it just needs a certain understanding.

This sounds very complicated but in simpler terms, if someone is profiting it is because someone else is losing. Read up and research what is safe in terms of winning ‘your bet’. You wouldn’t bet on a horse that was forecast to lose would you? The same principle should be with you when wagering your money on a commodity or a currency. Anything you wish to spread bet on extensive and varied but it is only as good as research and figures show you. Armed with as much information as possible will stand you in good stead for raking in some tax free winnings.