Things To Know About Spread Betting

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Spread betting used to be a term used about a mystical phenomenon where stock brokers made millions in minutes but you or I wouldn’t have a clue what it’s all about. Since the birth of the internet and platforms such as Capital Spreads, spread betting on various markets has become something that regular investors can participate in too. However, before you draw out your pension fund and start playing Mr Stockbroker there a few Things To Know About Spread Betting.

First things first, a warning. This is both a financial warning and a health warning. Spread betting is gambling. You are placing bets on whether a market will go up or down and just like placing a bet in the bookies or choosing red on a roulette table the odds are always stacked in the favour of the spread betting company. This can lead to unlimited losses and many stressed-out days followed by sleepless nights for the uninitiated and uneducated. With this said, if you are prepared to study the art of spread betting it is certainly possible to make considerable returns on your investments, however this take time and practice and will not happen overnight.

One of the benefits of spread betting is the tax benefit. Unlike actual stock trading, spread betting in the UK is a form of gambling and is therefore free of any income or capital gains taxes, assuming that you actually make a profit. This is the reason that many traders choose spread betting over other forms of market trading.

If you like the idea of studying the markets looking for that key moment to place your bet then spread betting may be just the investment idea for you. Capital Spreads are one of the leading online spread betting companies. Capital Spreads charge no commission or fees for using their spread betting platform and have a huge range of products to choose from. Start spread betting today at www.capitalspreads.com.