Category: spread-betting

Spread betting is a financial derivative that allows traders to speculate on the price movements of various assets, such as stocks, currencies, commodities, and indices. In spread betting, the trader bets on whether the price of the underlying asset will rise or fall. The trader doesn’t own the underlying asset but instead bets on the…

Spread betting offers several advantages, which contribute to its popularity as a financial trading method. Here are some of the advantages: Despite these advantages, it’s important to remember that spread betting involves significant risks, including the potential for substantial losses. You should conduct thorough research, use risk management strategies, and understand the mechanics of spread…

Margin in spread betting refers to the amount of money or collateral required by a trader to open and maintain a leveraged position on a financial market. When you engage in spread betting, you do not buy or sell the asset itself, but rather bet on whether the price of the asset will rise or…

Leverage in spread betting refers to the ability to control a larger position in the market with a relatively smaller amount of capital. It allows traders to amplify their exposure to price movements of financial instruments without actually owning the underlying asset. The use of leverage is a key feature of spread betting and other…

A margin call is a notification or request from your broker to deposit additional funds into your trading account when the account’s equity falls below a certain level, known as the maintenance margin. It occurs in leveraged trading, such as spread betting or margin trading in the financial markets. When you open a leveraged position,…

Spread betting, like any form of financial trading, carries certain risks which you need to be aware of before you start. Here are some of the key risks associated with spread betting: It’s important to note that spread betting is not suitable for everyone. If you are uncertain about the risks involved, it’s advisable to…

To spread bet the FTSE 100, you need to follow these general steps: It’s important to remember that spread betting on the FTSE 100 carries significant risks due to the use of leverage, and it’s essential to have a solid trading plan in place and manage your risk appropriately.