How To Start Financial Spread Betting

Category: Business, Financial

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Introducton to Financial Spread Betting

Let's start off what with what financial spread betting is how to use it to become a successful trader. Spread betting is a financial instrument which allows you to trade many markets such as indices, forex, oil, metals, commodities, individiual shares, interest rates and much more. On one platform you have access to so many financial markets and you can trade all of them on margin, thus you need less capital opposed to the capital you'd need if you used convential share dealing.

Also, financial spread betting is tax free (in the UK and Ireland), so you don't need to pay tax on the profits, you don't even need to report those gains to the tax authorities, it's one of the reasons why spread betting became so popular amongst retail traders.

Finding a reputable spread betting broker

Now, you understand how it works, you'll need to find the best spread betting broker, the best I mean a company which offers tight spreads, has good reputation, great customer service, the range of markets you actually want to trade and importantly it is regulated by the FCA (UK Financial Conduct Authority).

Having found a good spread betting broker, you'll need to apply for an account, it's a simple process which will take you about 10 minutes. You broker will ask you to send some documents such as proof of address and a copy of your ID, then they will call you to introduce themselves and welcome you. And off you go, you are ready to spread bet.

Learning the financial markets

Before you start trading using financial spread betting you need to truly understand how financial markets work and how they operate. Do you know what events move prices of the financial instruments? Do you rely on technical or fundamental analysis? Do you know what markets do you really want to trade? Before you start spread betting you need to develop your own tactics and strategies to be truly successful. It's better if you start with small amounts to practice first and as you get a hack of it you can increase your spread bets. It's always better to learn with a real trading account than with a demo, as you'll be dealing with with small amounts, you won't lose much but at the same time you'll learn to trade and money manage when using financial spread betting.

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Spread betting strategies

You need to decide what trading strategies you will be using. There are many strategies for financial spread betting so you can use several of them simultaniously. But the choice also depends on the amount of time you're willing to contribute to financial spread betting. If you have a full time job, probably, it would be a good idea to start off with the long term trading strategies.

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