Docstoc

Advantage of Financial Spread Betting Vince Stanzione

Document Sample
Advantage of Financial Spread Betting Vince Stanzione Powered By Docstoc
					Advantages of Financial 
Spread Betting 
Financial Spread Betting has been available for over 30 
years however in the last 10 years its popularity has 
really exploded. Tens of thousands of retail investors 
everywhere from the UK and Europe, to Australia and 
South Africa trade shares, currencies, bonds and 
commodities on the financial stock markets daily. Here 
are some of the reasons why it has become so popular. 

Tax Free in UK 
Unlike traditional share dealing, you pay no taxes on your profits. 
They are not considered profits under tax laws, but a winning bet, 
and as such Capital Gains Tax does not apply. The transactions 
also involve no stamp duty, as the underlying share or commodity 
is never actually purchased – it’s just a bet on whether or not the 
value will rise or fall. 

No fees or commission 
Spread‐betting companies don’t charge commissions or brokerage fees. They include all 
costs in their spread. The last few years competition has become fierce with spread as low 
as 1 point. 

Profit from rising or falling markets 
One of the biggest advantages of spread betting is that it 
doesn’t matter in which direction the market is going – you 
can still make money. A profit can be made in a falling market 
as well as in a rising one. Also with fixed odds bets you can 
also profit from a range or dull market effectively betting on a market to do nothing. 

Trade on Margin 
Spread betting is leveraged, which means you only need to 
bet a small percentage of the value of your trades.  You can 
make the bet using a fraction of the money it would require 
if you wanted to buy the actual shares from a stockbroker. 
This is also known as gearing.  You can also choose the size of 
your stake, often much smaller than would be the case if you 
were speculating on the underlying market. 
 

Wide Range of Markets 
You can access thousands of markets from one account 
stock Indices, currencies, bonds commodities, shares or 
even, in some cases, house prices. Most Financial 
Bookmakers allow you to trade directly from a website 
without the need to download any additional software. 

24 hour access 
Some spread betting companies are open 24 hours a day 
from Sunday night to Friday night. This allows trading in 
hours even when underlying markets are closed. Dealing 
can be done online or by phone. You can now also trade 
with your mobile phone or smartphone including apps 
that are available for the Iphone, Ipad and Blackberry 
devices, so you can trade whenever or wherever is 
convenient for you. 

Control your losses 
You can set limits on the losses you are prepared to take. These 
are known as Stop Losses, or Limit Orders. They offer 
protection against massive losses if the market moves against 
you. Also most Financial Bookmakers offer Controlled Risk Bets 
(CRBs) meaning that even if a stop cannot be filled in the 
underlying market you would still be protected. 

Hedging 
Spread‐betting can be used as a hedging tool to offset against losses in your other portfolio. 
For example, if you own shares which are decreasing in value in the short term, you can bet 
on the value falling, and make a profit to offset 
against the loss in value of the shares you hold. 
Many investors use spread‐betting to hedge 
against losses. Another popular hedge is Gold, 
say you had some Gold coins and your worried 
that Gold will fall but do not want to sell their 
coins you could spread bet gold to go down 
which would protect you. 

 
Regulated Industry 
The spread betting industry is tightly regulated. In the UK, 
this is by the Financial Services Authority (FSA). It means 
strict rules apply and the firms offering it are secure and 
safe. 

Don’t jump into Financial Spread Betting Blind 
                                              Before you try Financial Spread Betting it’s well 
                                              worth getting some good advice and training.  
                                              Spread Betting Veteran Vince Stanzione has 
                                              been trading for over 25 years and has 
                                              produced a course “Making Money From 
                                              Financial Spread Trading” which is a 160 page 
                                              workbook, 2 and half hours of DVDs and a 
                                              members only website. To find out more go to 
                                              www.fintrader.net  

                                               

                                                                                                    
 

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:52
posted:4/17/2011
language:English
pages:3
Description: Advantages of Financial Spread Betting Financial Spread Betting has been available for over 30 years however in the last 10 years its popularity has really exploded. Tens of thousands of retail investors everywhere from the UK and Europe, to Australia and South Africa trade shares, currencies, bonds and commodities on the financial stock markets daily. Here are some of the reasons why it has become so popular. Tax Free in UK Unlike traditional share dealing, you pay no taxes on your profits. They are not considered profits under tax laws, but a winning bet, and as such Capital Gains Tax does not apply. The transactions also involve no stamp duty, as the underlying share or commodity is never actually purchased – it’s just a bet on whether or not the value will rise or fall. No fees or commission Spread‐betting companies don’t charge commissions or brokerage fees. They include all costs in their spread. The last few years competition has become fierce with spread as low as 1 point. Profit from rising or falling markets One of the biggest advantages of spread betting is that it doesn’t matter in which direction the market is going – you can still make money. A profit can be made in a falling market as well as in a rising one. Also with fixed odds bets you can also profit from a range or dull market effectively betting on a market to do nothing. Trade on Margin Spread betting is leveraged, which means you only need to bet a small percentage of the value of your trades. You can make the bet using a fraction of the money it would require if you wanted to buy the actual shares from a stockbroker. This is also known as gearing. You can also choose the size of your stake, often much smaller than would be the case if you were speculating on the underlying market. Wide Range of Markets You can access thousands of markets from one account stock Indices, currencies, bonds commodities, shares or even, in some cases, house prices. Most Financial Bookmakers allow you to trade dire