There is always two sides to anything you look into. There will always be two ways to do a thing be it in a relationship, an argument or things like adding sugar or honey to your tea. The process is similar in financial spread betting wherein investors predict the price of a particular commodity or stock and make money if the market says the same. Though we would not advise anyone to do it, but if you are the one who dont want to pay for capital gains or income tax, then financial spread betting is your cup of tea.
know the basic
Market is prone to fluctuations on everyday basis, and a financial spread better takes the risk in that to make gains. Once you spread your investment you make yourself ready to buy or sell as per the market pulse. You may be fearing the times are quite unsafe for financial spread betting. There is no risk of physical share trading in financial trading. The dealing spread is the only thing you have to pay for.
When it comes to financial spread trading, there are some fundamentals you need to be acquainted with. Here’s our list.
Spread. Spread means the amount of gain or loss as in the difference between the price you paid and what you received on selling. The benefits of actually paying for the spread can be many. Few of the best things about this is no commission, stamp duty, brokerage fees, or even capital gains tax to be paid. What you can win essentially depends on where you’re located. The benefits or advantages can go down very low and even go beyond what we have said here.
You need to have strong fundamentals of the trade, so grab hold of spread betting guide or book and learn them. The daily transaction is all about judging when to buy or sell. Your timing of financial spread betting should be perfect to gain maximum. Finanacial market can be quite unpredictable but highly rewarding places to be in.
How to managhe risk. The financial market is one of the most volatile yet rewarding places you can be in. In financial spread betting use various tools to minimize the risk. Take complete advantage of the controlled limits, stops and limits to the full extent when you are playing the market. Shristy Chandran writes on various finance topics like Financial Spread Betting.