In this day and age of stable and super-fast Internet connection, spread betting sites that specialize in the delivery of up-to-the-minute online trading application such as Tradefair, IGIndex, and CMC Markets are becoming the norms of mainstream online trading. This software comes with all the trading tools necessary to describe clean and authentic indicators to bid or ask on a specific position in the market for day traders of varying conditions.
This trading tool also gives day traders the all-important guide on various trading decisions including options to move for a trade, monitor progress and conditions in the market and exit from a trading position. Spread betting offers these leverages today traders without the consequence of broker commission, and all trading activities are done online.
In financial spread betting, both novice and experienced traders have the equal financial opportunity and ability to quote and deal commodities like gold, oil, wheat, etc. on share indices like FTSE 100 and Dow Jones; All these trading activities can be done across a broad range of currencies. One of the distinctive features of spread betting is that the financial spread is not subject to tax.
The five substantial motives to opt for financial spread betting
1. Simple to Execute
Financial spread betting is anchored on the general principle of making a bet on a specific stake per point. This kind of system works well in practically all types of the futures market and all market conditions. Initially, the system may appear to be complicated and tricky, but after going on a trial run, you will learn that it is a pretty simple system that even a newbie can follow without missing a beat.
2. Minimal initial capital requirement
To begin with the system you do not need put the last penny from your account and go bankrupt, all you need is a small quantity of capital, and you are ready to spread betting. Contrary to stock trading, you do not need to worry about the broker’s commissions. It implies that broker charges won’t overburden you, and you can happily make small trades. The incidental costs are already imputed in the spread size and remain the same across the trading range regardless of the size of your trade position.
3. Tax-free trading system
The financial benefits gained from this system are not levied with tax duties nor do you have to pay stamp duties every time you make a buy. This translates to windfall profits especially when you are making financial headway and breaking the capital gains threshold. Though always make sure that you monitor any probable alterations in the tax laws and ascertain that you keep improving your capital gain potential of your trading position.
4. Currency fluctuation shield
When you make the buy in countries with different currencies from your account, then you are exposed to an additional risk due to potential dips in the currency value. Again, if you get into spread betting, your deal is executed on point on point variations, and the currency factor never comes into the picture. The good thing about this system is that you have the leverage to play the dips and peaks of the currency on which you are making the trading position.
5. Diversity in application
This application type provides traders to play with their stakes in various markets on the same spread betting account The trading system gives you the flexibility to trade local and foreign equities, house prices, currencies, futures, options, interests, and bonds
Types of spread betting
Financial spread betting companies offer a range of spread betting options to suit your financial spread trading needs.
Spread betting on shares: most financial spread betting companies offer you a convenient way of spread betting on shares. Financial spread betting on shares enables traders to profit from correctly predicting the future movement of share prices.
Spread betting on stock market indices: all of the best financial spread betting companies allow you to spread bet on stock market indices. The spread bets are based on the total value of the stock market index and therefore how much the index moves up or down. That is to say, rather than trade on individual shares you can spread trade on the performance of whole stock market indices like the FTSE 100, Dow Jones 30, S&P500 or Nikkei 225.
Spread Betting on Forex: Many of the financial spread betting companies provide spread betting on the forex markets. Financial spread trading on the forex markets offers high liquidity with huge trading volumes and 24-hour markets; many investors prefer spread betting on Forex.
Spread betting on sports: Of course, there is a sport. Sports spread betting is useful for those who are looking for big bets on sports like football, horse racing, rugby, and cricket. The most popular sport is football which accounts for 60% of the bets. Racing is the next most popular spread betting sport. After that, there’s rugby and cricket which are both well suited to sports spread betting.