Compare Spread Betting Companies
| What is spread betting? |
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| Written by Gary Howes | |
| Thursday, 12 August 2010 15:26 | |
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And many readers will be wondering how they can get involved in the markets for the first time. South African investors - large and small - now have access to a quick, easy and low cost way to trade individual shares, foreign exchange, stock indices, commodities and interest rates. Until recently investing and trading was done via traditional broker channels with very limited markets. To make any decent amount of money one required a large outlay of cash. One also needed a great deal of patience before seeing any good return on those investments. With the advent of Spread bet you pay no commissions or other fees when you trade. You can also make a great deal more money than you initially put into your account. You can make this money quickly if you make the right calls. But, you can just as quickly lose it. |
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| Last Updated on Thursday, 12 August 2010 15:27 |
Spread Betting Lessons - Cut out the emotion!
Oh, and also a lesson why the Stop Loss is your Friend !
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Spread betting at a glance
- Spread betting is a financial product that allows retail and professional investors access to the widest possible number and types of exchange traded instruments.
- The spread betting company that you trade through is the market maker, the trader does not actually take ownership of any underlying product. Hence, most jurisdictions do not charge stamp duty on any gains.
- The notion that you don't actually own the product ensures spread betting platforms are able to almost instantaneously execute orders on behalf of their client.
- Spread betting is a leverage product, your money is able to realise you impressive gains as your earnings come in multiples of the actual change in the underlying product that you are trading.
- This is of course where spread betting can also go spectacularly wrong. Losses can be huge, therefore we advise those that are spread betting, or are looking to go into spread betting, to enter each trade with a well thought out strategy. This also means setting a pre-determined stop loss so that losses are cut at a manageable level.
- This website is here to offer more insight into this fascinating trading instrument.




