Your very own guide to financial spread bets
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What is it all about??
Financial spread betting is mainly among very exciting highest growing means of contemplating on the activities of the underlying index or share. For most of the investors or traders it has turned out to be a cost efficient and flexible alternative to trading in ordinary shares. |
Advantages
· You can enable to limit or boundary the risks by utilizing stop loss.
· No direct fees or commissions are paid to any of the company facilitating spread betting.
· Stamp duty is not payable that results to save around 0.5% in comparison to the purchase of traditional shares.
· You can gain profits from rising as well as falling markets.
· You can avail profits free of taxes: The profits earned on spread betting are not subjected to the capital gains tax*
· A single- or sole account could give you admittance to a wide array or financial markets.
· They are known to be traded on margins or boundaries. Hence, the bets could be placed with a comparatively small preliminary outlay.
· The capability to place small bets. Few of the companies allow you to place bets as small as 1p per point.
· It is to be kept in mind that the tax laws keep changing*
Disadvantages
· You have no rights as a shareholder, which includes no benefits from the dividends as well as no voting rights.
· It is less likely to suit the investors investing in a longer term. If, in case you hold the bet for a longer time, the associated costs tend to increase and it might have been more advantageous to have purchase the fundamental assets.
· Few of the market might be very unstable, and until you place a stop loss, there are chances of you incurring heavy loss. This happens when your arrangement moves against you.
· You can enable to limit or boundary the risks by utilizing stop loss.
· No direct fees or commissions are paid to any of the company facilitating spread betting.
· Stamp duty is not payable that results to save around 0.5% in comparison to the purchase of traditional shares.
· You can gain profits from rising as well as falling markets.
· You can avail profits free of taxes: The profits earned on spread betting are not subjected to the capital gains tax*
· A single- or sole account could give you admittance to a wide array or financial markets.
· They are known to be traded on margins or boundaries. Hence, the bets could be placed with a comparatively small preliminary outlay.
· The capability to place small bets. Few of the companies allow you to place bets as small as 1p per point.
· It is to be kept in mind that the tax laws keep changing*
Disadvantages
· You have no rights as a shareholder, which includes no benefits from the dividends as well as no voting rights.
· It is less likely to suit the investors investing in a longer term. If, in case you hold the bet for a longer time, the associated costs tend to increase and it might have been more advantageous to have purchase the fundamental assets.
· Few of the market might be very unstable, and until you place a stop loss, there are chances of you incurring heavy loss. This happens when your arrangement moves against you.
What could you trade??If you learn financial spread trading, you will learn that since you are not selling or purchasing the fundamental instruments. Hence, the array of instruments you can bet could be more than just the fundamental shares. You could bet on:
· Bonds
· Futures and options
· Commodities, for instance, oil and metals
· FX, Currencies
· Interest Rates, both long and short term
· Individual shares from the FTSE 250 and FTSE 100. Also from the leading European and Us shares.
Following is the reference video link for more information on the above mentioned topic:
· Bonds
· Futures and options
· Commodities, for instance, oil and metals
· FX, Currencies
· Interest Rates, both long and short term
· Individual shares from the FTSE 250 and FTSE 100. Also from the leading European and Us shares.
Following is the reference video link for more information on the above mentioned topic:
