Spread betting appeals to a wide variety of individuals who want to take advantage of the versatility and great value that spread betting can offer.
Experienced investors use spread betting as an additional trading tool as the spreads offered rival the prices available in the real market. Alternatively, many investors use spread betting to hedge their existing share portfolio. For example, if you have some shares, which are decreasing in value in the short-term, you could “Sell” the value of the share using a sell bet with Capital Spreads and possibly make a profit to counter-balance the decreasing value of your shares.
You do not need to be an experienced investor to spread bet, but you do need to research the products that you wish to trade and be aware of the risks associated with spread betting. Many individuals new to spread betting use technical analysis to guide their investment decision.
One of the problems for spread betting companies is the word ‘betting’ as this gives a false impression to the marketplace. Spread Betting is in fact a highly adaptable trading tool. With an account at a firm such as Capital Spreads you can trade in many financial products using just one currency – they offer prices on UK, European & US shares, World Indices, Commodities, Foreign Exchange, Bonds and STIRS. You can bet on the Cash, the Future or on Rolling Daily products.
Rolling Daily Bets provide a cost-effective solution for short-medium term trading. These bets do not expire at the end of the day but are automatically ‘rolled over’ to the next trading day. The spread on these bets is very tight, increasing the opportunity of profitable trading. The bets never expire – they continue until either you trade out of them, or your stop level is hit.
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