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5 Major Reasons Why You Have to Go Spread Betting by Steve H





Article Author Biography
5 Major Reasons Why You Have to Go Spread Betting by
Article Posted: 04/26/2010
Article Views: 97
Articles Written: 64
Word Count: 595
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5 Major Reasons Why You Have to Go Spread Betting


 
Investment
In the modern times of Internet with high-bandwidth breakneck speeds and steady connection, professional spread betting sites are becoming very common which deliver online trading applications like Tradefair, IGIndex and Capital Spreads and specialize in presenting up-to-the-second data. These softwares come with all the trading tools necessary to describe clean and authentic indicators to bid or ask on a specific position in the market for day traders of varying conditions.

The software also provides day traders with a crucial guide in assisting their various trading decisions like options to move for a trade, monitoring progress and market conditions, and closing a trading position The leverages to day traders are offered in spread betting without any effects of commisions to the broker and trades are executed online alone.

In financial spread bettting, both novice and experienced traders have equal financial opportunity and ability to quote and deal commodities like gold, oil, wheat etc on share indices like FTSE 100 and Dow Jones; These trades can be executed across several indices with a wide range of currencies One of the distinctive features of spread betting is that the financial spread is not subject to tax.

The five substantial motives to opt for financial spread betting

1.Easy to implement

Financial spread betting is anchored on the general principle of making a bet on a specific stake per point. This kind of system works well in practically all types of futures market and in all market conditions. Initially, the system may appear to be complicated and tricky, but after going on a trial run, you will learn that it is a pretty simple system that even a newbie can follow without missing a beat.

2.Small Initial Capital

You don’t have to break your bank account to start with the system, and with a minimal amount of capital infusion, you can already go on spread betting. Contrary to stock trading, you do not need to worry about the broker's commissions. This means that you don’t get weighed down even if you go for small trades. The accompanying costs are all included in the spread size and continue to be equal across the trade range irrespective of your trading position size.

3. Down-right Tax-free Trading System

The fiscal earnings obtained from the system are neither subjected to tax duties or stamp duties when you bid an offer. This translates to windfall profits especially when you are making financial headway and breaking the capital gains threshold. However, you have to closely monitor possible changes in tax laws to ensure that you are on the ball with regards to the real earning potential of your trading position.

4.Protection against Currency fluctuations

When you make the buy in countries with different currencies from your account, then you are exposed to an additional risk due to potential dips in the currency value. Yet again, if you get into spread betting, your deal is executed on point on point variations, and the currency factor never comes into the picture. The good thing about this system is that you have the leverage to play the dips and peaks of the currency on which you are making the trading position.

5. Heterogenous Application

This type of trading system allows you to play with your stakes on different markets using a single spread betting account. The trading system gives you the flexibility to trade local and foreign equities, house prices, currencies, futures, options, interests and bonds

Our firm provides information on financial spread betting and you can also compare spread betting firms.

Related Articles - spread betting, compare spread betting accounts,

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