Peter Bain Forex Trading Video Course

Spread Betting UK Explained

by Editor on 20/07/2010 · 0 comments

in Education,Forex,Investment Club,Property,Tax Haven,Taxes

The UK is the home of financial spread betting. It has been in exsitance since the seventies but struggled at the beginning primarily due to it’s name. In fact it is just another way of trading in the same markets that have been around for many years.

Which markets can you choose from? Well there is spread betting UK Stock and shares. You can bet on almost any you want but the spreads tend to be a bit larger for smaller companies. Even some shares in the FTSE 350 the spreads can be quite large. You may want to stick to shares in the FTSE 250.

Another extremely liquid market is spread betting UK indices. You can trade on most of the main indices but the FTSE 100 is the most popular in the UK. You can also trade on indices from other parts of the world including, but not limited to, the Dow Jones, the Nasdaq, the DAX etc. Spreads tend to be very tight on these markets and you need to look out for different things than you did for individual shares.

Commodity markets sometimes lack appeal. People are often scared to invest or trade in commodities because the markets are very volatile. That is a great thing for us traders, we love volatility. There are a wide range of commodities for you to trade. You may have to put a larger deposit down with commodities because the price on a margin can be quite high. In absolute terms, not relative terms.

Trading currency is also an option for you. You have the option of trading in almost any currency pair whether you are spread betting UK sterling against the dollar or the Euro against the Yen. You will be able to make money on the smallest changes in currency as you can move from one market to the other very quickly.

Whatever your motivation for trading there should be plenty of spread betting UK companies available to you. You will be able to find lots just by searching the internet.

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