There are many advantages to spread betting not least the flexibility to engage in transactions whilst on the move and in your spare time. In addition to this, as you don’t own the asset there is no need for large capital investment. The basic principle of this form of investment and trading is a simple one. However, albeit straightforward it would be prudent to enlist the support of a professional such as the CMC markets, an online trading and investment company.
The recent United States Presidential election has, as would be expected caused some nervousness in the markets, however careful analysis is required to determine the possible impact on the markets over the coming months and in particular the impact on spread betting.
To look at this in detail we need to consider the principles of spread betting. There are different methods of spread betting but we will concentrate on online trading. This provides an excellent method of monitoring the markets and managing individual spread betting. We have already touched on the advantages of the process but in addition to this a key factor is the fact that spread betting is considered to be gambling and as such any profit is not subject to taxation. Unlike some forms of trading the investor does not buy shares but buys a stake (points). In addition the investor can also sell their stake. The point at which the stake is sold is the important factor as this will dictate the profit (or loss) that will be made. Spread betting allows the trader to trade on the price of movement of thousands of financial markets including commodities, indices, stocks and shares.