If you’re interested in spread betting here is a list of our spread betting advice on the most frequently asked questions about this type of betting.
Spreading Betting Advice # 1: What is the best tip for those interested in spread betting?
The best spread betting advice we can give (and we are not trying to be sarcastic about this) is to use logic and follow your judgment. The best thing you can do before participating in this type of betting is to research and read a lot about the even you want to wager. Then from there you can use logic and judgment to serve you best. When you listen to other people’s advice whether under good intention or not can lead to disaster.
Another advice you should consider is to be a contrarian when it comes to spread betting. In spread betting a contrarian investor will do (or at least think about) the opposite of what the populous is saying. When a person is a contrarian he will buy shares of a company that many people say is over valued or can go bankrupt. It may not guarantee winning but the reward of that company’s success can be handsome monetary value. Of course it is a big gamble, so be responsible and research first before you do anything.
Spreading Betting Advice # 2: Is it riskier to spread bet than to share trading.
Leveraged trade is what spread betting is all about. This means that for you to be able to buy a position you only need to give a minimum deposit rather than the whole bill. The downside is that your winning or money loss will be equal to the traded full value. This results in a very generous reward when you win but a very disastrous one if you lose.
An example we can give you is if the price of say Amazon goes up and you choose to buy $1000 worth of stocks. On a typical trading you pay the $1000 and have an acknowledge document for that amount. On the other hand in spread betting you only have to give the margin requirement. So you have to shell out $50.
If Amazon’s stock goes up by 5 percent your worth will be $1050 on a normal stocks market. In spread betting you get 100 percent of the deposit. So the more money you risk in spread betting the more exposed you are to big loses. Our spread betting advice is to always buy in small amounts so that do not lose too much.
Spread betting is easy if you understand how to play it and calculate your risks cleverly. So again the best spread betting advice we give you is research the market and fill your books with information on the market or event you want to put your money in. Good luck. football betting