Spread Betting With Shares

Spread betting, or trading, call it what you will, an investment or a gamble, it's not really any better than us sports gamblers, or even poker players. You can lose a lot (as the news has recently lead us to see, a lot can be £3 Billion), by not knowing what your doing, admittedly the banker wasn't spread betting, but was effectively betting on the futures market, which is similar (but instead of buying/selling share prices he was buying/selling futures). So how does spread betting work? Well the bookie (or the trader, in most cases with financial bets) will offer you a buy, or a sell price, a hi or a low if you'd rather see it that way. You will be in profit ...

Spread Betting – How it Works This is how spread betting works. Suppose you want to bet that the share price of Marks & Spencer will rise. Instead of investing, say, £7,000 to buy 1,000 shares at £7 each (paying the broker's commission and stamp duty), you buy a spread bet at £10 a point instead – this means that for every penny the M&S share price rises you will make £10. If the price of M&S shares rises by 10 per cent, your share purchase holdings will show a profit of £700 on your £7,000. But with a spread bet or CFD, your initial deposit 'on margin' will typically have been just 10 per cent of the value of the shares, in this case £700. If the ...

Spread betting is very simple and the high rewards that can go with it are proving very attractive to anyone interested in investment, particularly as you do not pay any dealing costs on your trades, or any taxes on your profits ! Spread betting gives the investor an opportunity to back their judgement on almost any financial market, over a given period of time. All the investor needs to decide, is whether to 'buy' or 'sell' the spread betting companys prediction of a future outcome. In all cases the prediction, known as the 'spread' is represented by 2 figures - Daily FTSE SELL BUY 6300 6306 Th ...