There will always be two sides to anything someone can look into. There will always be two ways to carry out something, be it in a relationship, an argument or even adding sugar or honey in the tea. The very same rule do actually applies on financial spread betting, in which investors simply speculate the prices for a particular commodity or stock and earn from it if they got it right. Though we would not advise anyone to do it, but if you are the one who dont want to pay for capital gains or income tax, then financial spread betting is your cup of tea.
Understanding the basics
Market is prone to fluctuations on everyday basis, and a financial spread better takes the risk in that to make gains. When you spread what you have, you essentially make your move, that is, you “buy” or “sell” when you feel like the market is going your way that day. You may be fearing the times are quite unsafe for financial spread betting. There is no risk of physical share trading in financial trading. The only thing you need to put up with is the charge for dealing spread.
You need to be acquainted with basics of trade while doing financial spread betting. List is here.
Spread. Spread means the amount of gain or loss as in the difference between the price you paid and what you received on selling. There are huge advantages of playing for the spread. But some of our favorites include the fact that we don’t have to shoulder any commission, stamp duty, brokerage fees, or even capital gains tax. Your win also depends on your location. We have listed how far the benefits can go down, sometimes it might go much beyond those limits.
Try finding out spread betting guides and books which can teach you the basic of the trade. Everyday transactions essentially highlight the importance of knowing when to buy or sell. If you want to be at an advantageous position vis-a-vis financial spread betting, then perfect your timing. Finanacial market can be quite unpredictable but highly rewarding places to be in.
Managing risk. Financial market can be very volatile but highly rewarding places to be in. In financial spread betting, you need a number of tools that can help you minimize your risk. While playing the market use the controlled limits, stops and limits to the fullest extent. Shristy Chandran writes on various finance topics like Financial Spread Betting.