A Beginner"s View of Financial Spread Betting
Never think that you know everything about financial betting simply because you've read a few articles about it here and there.
Not everybody grasps the concept of spread betting so quickly and since it's best understood hands-on, there's no article in the world that can explain it fully.
Perhaps one reason for misunderstanding what it really is comes from the term itself.
"Spread Betting" certainly doesn't mean that you need bookies and runners to place your bets for the activities the next day.
Neither does it mean that you'll have brokers yelling their heads off in the middle of a crowded building just to get your orders placed.
The simplest explanation of financially betting is that it involves what and how you think regarding the stock market.
You don't own any of the shares that you are betting on.
You don't even have to buy any stocks at all in order to do this.
All you'll need to do is create an account with a reputable brokerage firm and you could start money betting at any time.
What happens here is you say what you think a certain stock will do or how they will perform.
It go up or down or remain still? By how many points will it move? This is an educated guess that should be based on good solid research and not just gut feel.
After it's entered into a pool with other people who have speculated on the same stock, you'll be able to win or lose until you remove your money from the pool.
What's different about money betting is that you don't own the shares that you are betting on.
You're simply speculating on what the share will do and not on the company itself.
So whether the company makes good or not, you still make money.
Whatever you want to bet on, you can.
It's not just stocks or shoares but any market instrument.
Whether it's currencies, stock indices, or commodities are open to betting.
Plus, if you win on your bet, your winnings aren't subject to tax, which anybody would be happy with.
Not everybody grasps the concept of spread betting so quickly and since it's best understood hands-on, there's no article in the world that can explain it fully.
Perhaps one reason for misunderstanding what it really is comes from the term itself.
"Spread Betting" certainly doesn't mean that you need bookies and runners to place your bets for the activities the next day.
Neither does it mean that you'll have brokers yelling their heads off in the middle of a crowded building just to get your orders placed.
The simplest explanation of financially betting is that it involves what and how you think regarding the stock market.
You don't own any of the shares that you are betting on.
You don't even have to buy any stocks at all in order to do this.
All you'll need to do is create an account with a reputable brokerage firm and you could start money betting at any time.
What happens here is you say what you think a certain stock will do or how they will perform.
It go up or down or remain still? By how many points will it move? This is an educated guess that should be based on good solid research and not just gut feel.
After it's entered into a pool with other people who have speculated on the same stock, you'll be able to win or lose until you remove your money from the pool.
What's different about money betting is that you don't own the shares that you are betting on.
You're simply speculating on what the share will do and not on the company itself.
So whether the company makes good or not, you still make money.
Whatever you want to bet on, you can.
It's not just stocks or shoares but any market instrument.
Whether it's currencies, stock indices, or commodities are open to betting.
Plus, if you win on your bet, your winnings aren't subject to tax, which anybody would be happy with.
