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The Fundamentals of Financial Spread Betting: What Newbies Need to Know

Posted On : Feb-25-2010 | seen (724) times | Article Word Count : 436 |

You will always receive that brows-raised look when you say "financial spread betting." After all, anything and everything that has the word "betting" in it will always be, well, dubious. You may imagine, Mafia-like transactions, old world capitalism, the financial incentives of casino, the lights of Vegas, and, of course, everything that a millionaire has the right to worry about.
Financial spread betting usually causes raised eyebrows .”After all, anything and everything that has the word “betting” in it will always be, well, dubious. Lights of Vegas, mafia transactions, old world charm of capitalism and casino financial incentive, well dream about what all a millionaire thinks about whole day. Whatever you are hearing on the sides one thing is for sure; Financial spread betting is still one of the most exciting and monetarily rewarding and an attractive option for anyone with the heart to bear the excitement of playing for the market.

All financial spread betting guides I have read, and still trying to digest, will tell you that financial spread betting is really a form of trade with a twist. Once you have placed your bet, you continue to hold that position and expect that the market will play according to what you have predicted. Almost everyone thinks of financial spread betting as sophisticated, highly technical game of minds whereas most investors will tell you that the rules of financial spread betting is based on the same principles as followed by other investment forms and in everyday gambling.

But what makes financial spread betting truly irresistible? It is more attractive as it is tax free. Do you really know how to make money from financial spread betting without your big brother asking for his share? Betting is what is involved in financial spread betting and not trade. At the end of the day what you gain is a tax free capital gain. What do you think of stamp duty? You might be trading alright, but this is still free since you dont buy any shares. Clamoring for more? There’s definitely more to financial spread betting than being a shelter for those who want to profit without tax.

Financial spread betting can be started with a nominal sum instead of your life savings. Small scale start up is always advisable and that is the beauty of this system. Seemed great since you don’t really have a stash full of cash? An encouraging fact is the financial spread betting being risk free. As a matter of fact lesser investment means bigger loss.

While you can utilize “Stop loss” to help you minimize the risk, a loss is still something you need to pay. Spread betting is essentially about gambling whatever you invest. And in every bet you’re playing, you must strive to get it right every time. If the market predicts differently than you than you loose . Do remember as in any form of gambling don't invest more than you can afford.

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Keywords : Financial Spread Betting, Spread Betting Guide, Spread Betting Advice, Financial Spread Betting Guide,

Category : Finance : Finance

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