Spread Betting UK Explained
Spread betting is very much UK dominated when it comes to finance. It has been around since the 1970s but has had a bad name because of the word bet...
Spread betting is very much UK dominated when it comes to finance. It has been around since the 1970s but has had a bad name because of the word betting. In fact it is just another way of trading in the same markets that have been around for many years.
What sorts of bets can you make in the financial markets then? Well firstly there is spread betting UK stocks. All the stocks in the FTSE 250 are very easy to bet on. Most companies allow the FTSE 350 but the spreads on these tend to be a bit larger. Make sure you know the size of the spread before you start.
A further option you have is spread betting UK indices. The most popular of all is the FTSE 100 and this is by far the most liquid of the indices in the UK. You are not limited to that though, you have the other FTSE indices as well as indices from other countries. In fact nearly every country in the world. As with individual stocks, the spread are tightest in the more liquid markets so look our for that.
If you ever suggested trading in commodities to someone they would think that you are mad. They will tell you that they are too volatile and hard to value because they don’t derive any income. Mostly they are correct. They are volatile and it is very hard to value them because they don’t produce an income. The thing is that the volatility is there to help you. As a trader you need to use that to your advantage.
The Forex market is also available to you. You have the option of trading in almost any currency pair whether you are spread betting UK sterling against the dollar or the Euro against the Yen. You have the ability to move between markets very quickly and take advantage of even the smallest currency movements.
Whatever your motivation for trading there should be plenty of spread betting UK companies available to you. Just do a search in Google and there are plenty to choose from.
Tom has spent long hours on his website . If you want to find out more further guidance on go to his website. Feel free to ask Tom questions.
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