![]() ![]() ![]() As spread betting is trading structured as a bet, there is no. Instead of buying or selling a set amount of shares, futures, options or CFDs, you bet an amount based on every point the market moves through a spread betting broker. Later in the day it is trading at 7235-7236 and you close your bet at the selling price of 7235. Spread betting is trading the financial markets as a bet rather than buying or selling the underlying instrument. You think the index will go up and you decide to place an up bet with a spread betting company worth £2 per “point” at 7202. The FTSE 100 index is trading at 7201-7202 (7201 is the sell price and 7202 is the buy price). For UK tax payers there can be tax advantages in using financial spread betting products, although tax laws may change in the future.Ĭompare the best spread betting brokers here Example of a spread bet attempting to take advantage of an intra-day rising market 2 In the decades that followed, spread betting products expanded into the forex, commodities, shares and indices asset classes. As such, spread bets are derivative instruments. During the mid-1970s, spread betting entered the worlds financial markets through the launch of the Investors Gold Index (London, U.K.). With a spread bet the customer attempts to take advantage of rising or falling markets by taking a bet with a spread betting company on the price movement of an underlying instrument, rather than buying or selling the underlying instrument. Spread betting products have been around in the UK since 1974.
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