Financial spread betting is a financial trading instrument for retail traders in the UK and Ireland. It has plenty of advantages such as it is exempt from tax, it's a simple leveraged product and of course it offers a wide range of markets to trade. But as it's a leveraged product, it is important to understand the risks involved and take the necessary precautions.
There are a couple of reasons why you should consider it if you are to take your trading seriously. The most successful traders out there have a number of accounts.
The first reason for this is the ability to get the best quote. Financial Spread Betting is hard. Anything you can use to your advantage is great, even a half a point on the spread will make a difference.
By having more than one Financial Spread Betting account you will be able to read multiple quotes at the same time (with a little practice!). You will then be able to trade of the better one.
It will take time for you to reach this level but if you can trade this way then you will be ahead of a lot of traders.
The second reason is contingency. These days, spread betting trading platforms are a lot more stable. They don’t hang as much and they are very rarely down. The spread betting companies put a lot of time and money into making sure that this doesn’t happen.
But... What if it does? What if the financial markets are going crazy and you want to trade? When you log on…whoops…you can’t log on. Do you think you will be able to get through on the phone if this is the case? Not a chance…that is what everyone else will be doing. A second account should be able to get you through an event like this.
There are a couple of reasons why you should consider it if you are to take your trading seriously. The most successful traders out there have a number of accounts.
The first reason for this is the ability to get the best quote. Financial Spread Betting is hard. Anything you can use to your advantage is great, even a half a point on the spread will make a difference.
By having more than one Financial Spread Betting account you will be able to read multiple quotes at the same time (with a little practice!). You will then be able to trade of the better one.
It will take time for you to reach this level but if you can trade this way then you will be ahead of a lot of traders.
The second reason is contingency. These days, spread betting trading platforms are a lot more stable. They don’t hang as much and they are very rarely down. The spread betting companies put a lot of time and money into making sure that this doesn’t happen.
But... What if it does? What if the financial markets are going crazy and you want to trade? When you log on…whoops…you can’t log on. Do you think you will be able to get through on the phone if this is the case? Not a chance…that is what everyone else will be doing. A second account should be able to get you through an event like this.