Spread Betting Basics - Introduction
While the concept of financial spread betting is deceptively simple, experienced spread bettors will testify as to the difficulties and complexities of getting involved in the spread betting market, and the dangers that come with getting it wrong.
Spread betting comes with the lure of substantial returns, but natural market unpredictability makes it hard to consistently mitigate and overcome the risks of trading with such a high leverage ratio. As a result, many traders find themselves falling through the cracks, and ultimately trading unprofitably over time. However, with a consistent, logical approach to spread betting that covers all the bases and strategically focuses on generating a steady return on investment, it can be possible to profit from this most exhilarating of trading styles.
This tutorial is designed to help traders of all stages revisit the basics of spread betting: from what financial spread betting is and how it works through to practical advice and information on how to trade. Aimed at giving a comprehensive, no-nonsense overview of spread betting, traders can both consolidate existing knowledge and learn more about the fundamentals of successful trading, to help eliminate common mistakes and maximise the profit potential of the spread betting medium.
While we can’t guarantee you’ll be successful, we can promise you’ll find everything you need to know to develop and execute a successful and profitable spread betting strategy, and it’s worthwhile working section by section to ensure you’ve covered as much ground as possible before investing for real.
While there’s no substitute for experience, taking the time now to learn the fundamental theory underpinning financial spread betting will undoubtedly stand you in good stead, and improve your chances of building a successful trading portfolio.
Basics of Financial Spread Betting
So without further ado, let’s get started and turn to the most basic question there is, and ask 'what is spread betting?'.