Spread betting is a popular form of
trading on margin. It is by far less costly than trading regular
shares, and it contains some inherent flexibility. As to online
trading, InterTrader presents the best deal on spread betting.
InterTrader makes the trading experience easy and comfortable. Their
Bonus for initial accounts is up to a whopping £1,000. They aim to
make you a happy trader for the entirety of your trading life. Tight
fixed spreads and flexible mobile dealing are what you can expect at
InterTrader. Helpful, courteous and cost effective trades define the
spread betting experience at InterTrader.
Spread Betting Defined
Betting on the future rise or fall of a
trading instrument is known as spread betting. The spread is the
difference between the Buy bet, known as the offer, and the
Sell bet, known as the bid. The fall and rise in value of the
instrument being traded is calculated in terms of points. The
investor places a specific bet amount per point. Let’s say you find
a stock that appears to be at the threshold of a rise in value.
Spread betting provides the opportunity to cash in on any immediate
increase when you place a Buy bet. If that stock indeed experiences
an increase in value, then you may close with a Sell bet at the
higher value.
In practical terms, if you place a Buy
bet of £15 per point for Stock Z at 110
and it rises to 115, then the spread is 5 points. You may then
choose to close your position, placing a Sell bet at 115. Your
profit will be the spread times the bet amount: £75. Now look at a
stock which you perceive will fall in value. Without first placing a
Buy bet, place a Sell bet. If you were correct, and the stock
plummets, you would close your position by placing a Buy bet at the
lower value. Placing a Stop Loss will limit your risk. In a
volatile market, you could incur a major loss in the absence of a
Stop Loss.
Spread Betting at InterTrader
An ever-increasing number of investors
are finding spread betting at InterTrader to be an accessible and
affordable method of trading when the focus is on rising and falling
markets. Traders are consistently relieved to discover the tight
fixed spreads; low margin rates; and wide variety of
trading instruments, some of which include trade indices, forex
and shares. Further, all spread betting gains are untouched by
Capital Gains Tax and stamp duty. Secure service and user-friendly
platform are the hallmarks of InterTrader. You can rely on
InterTrader’s quick and accurate completion of every transaction.
You will find dependable and easy access, along with transparency in
the separate and secure placement of all client funds. Of primary
importance to every investor is InterTrader’s cost-conscious
trading package including a complete support system. You will receive
free training tools as well as free live charts and trading signals.
As an added bonus, traders enjoy a savings of up to 10% of their cost
with TradeBackTM.
This article has been contributed by InterTrader.com, a UK based spread betting
provider.
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