Spread betting is like stock market trading, the bet has two parts: the two parts are the bid and also the ask price. The bid price is the price at which you'll sell the stock, while the actual ask price is the price at which you'll buy the stock.
Once you obtained a spreadbetting quote, this quote will give you an ask or a bid price it is then up to to you to decide which way you want to play the market, will you buy or sell and hope the stock goes in the direction of your bet.
Once you are happy you place your own bet on the direction of the stock for each point. You are able to place a quantity such because 2 for each every point however the stock cost changes, regardless of whether it goes up or even down. Which means that if the actual stock starts at 1.22, if this moves in order to 1.23 when it's active on the market, you may earn 2 for your one point move. If this up in price to say 1.50, you'll earn 2 multiplied through the 28 points it has gone up.
You may close your own spread betting position if you think the stock price has moved too sharply and you want to bank some of your profits. The choice is with you when you want to close the trade, you can either close on your computer or smartphone. A huge benefit of spread betting is that you can close your spread bet at any time, on whatever your trading strategy is, using your phone or computer without the need to speaking to a broker.
The dangers of spreadbetting is that you can also loose money if the stock price goes in the opposite direction of your bet,
Keeping this at the back of your mind allows you to keep your own emotions in check as you can win and also loose on every trade.
Spreadbetting is exciting and and enables you to make a lot of money of short change on the price movement without the usual buying and selling charges wiping out your profit.
Once you obtained a spreadbetting quote, this quote will give you an ask or a bid price it is then up to to you to decide which way you want to play the market, will you buy or sell and hope the stock goes in the direction of your bet.
Once you are happy you place your own bet on the direction of the stock for each point. You are able to place a quantity such because 2 for each every point however the stock cost changes, regardless of whether it goes up or even down. Which means that if the actual stock starts at 1.22, if this moves in order to 1.23 when it's active on the market, you may earn 2 for your one point move. If this up in price to say 1.50, you'll earn 2 multiplied through the 28 points it has gone up.
You may close your own spread betting position if you think the stock price has moved too sharply and you want to bank some of your profits. The choice is with you when you want to close the trade, you can either close on your computer or smartphone. A huge benefit of spread betting is that you can close your spread bet at any time, on whatever your trading strategy is, using your phone or computer without the need to speaking to a broker.
The dangers of spreadbetting is that you can also loose money if the stock price goes in the opposite direction of your bet,
Keeping this at the back of your mind allows you to keep your own emotions in check as you can win and also loose on every trade.
Spreadbetting is exciting and and enables you to make a lot of money of short change on the price movement without the usual buying and selling charges wiping out your profit.
About the Author:
Learn more about financial betting. Stop by Kevin Hartley's site where you can find out all about spread betting and how to make a profit.
