Monday, March 18, 2013

0 What is Spread Betting and how to Capitalize on it?

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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