How Does Financial Betting Work

When you’re no longer getting the satisfaction out of casino, sports and horse betting, you need to think of another way for your money to rollover. Sometimes when you’re making too much money from your bookie or at the casino, they ask you to leave or move to another establishment and that takes the most fun out of it. You need a more stable system; something like the stock market, but better. The only thing you’d regret with investing your money through shares is you don’t get as much as sports betting or other means of gambling where the odds tend to be higher in general. You need a more leveraged product that will possibly increase your initial stake just like in any gambling method. You will need something like Financial Spread Betting.

Not Your Ordinary Method of Gambling

Spread betting is technically not gambling and it’s not a stock share investment either. For one, it’s not as random as betting on any market. Like true gamblers, you don’t want to place a bet on something that you are not so sure of. If you’re wise enough, you don’t throw your money away on short-term and long-term games based on pure luck alone. In financial betting, you get to enjoy advantages and get to gamble your money wisely. As an advantage, you get to enjoy your money more because these are tax free profits, exempted from stamp duty, and betting firms do not charge their users with commission as compared to investing with the stock broker.

Rise or Fall of Shares Do Not Matter At All!

Basically it works like any betting method. You place a spread bet on an underlying instrument and its future movement in the market. You can either bet on the market to fall or to rise. So, if you believe that the instrument will rise in the market the next day, you place a buy bet. When you predict that it’s going to fall, you place a sell bet. So, there’s actually no loss when the shares of the instrument falls in the market. Unlike share trading, you don’t get to lose money when the stocks fall.

Place a Bid or an Offer

A spread betting company will be quoting you with two prices for the underlying instrument you wish to bet on. One price will be a “bid” or the price where you sell at and an “offer”, which is a price that you can buy at. Movements of underlying instruments are measured in points. One point is usually equivalent to £1 and you can bet as much as you want against every point movement. You will also need to close a bet by placing an opposite bet on the instrument. Closing a buy bet will mean you’d have to sell at the current quote and a sell bet will have to be closed by buying at the current quote.

No Game of Luck or Intuition

In spread betting, there is no room for betting on an instrument out of pure intuition. You need to be wise and perhaps know how the stock market works before you engage in it. There is a huge tendency that you will lose many times more than your spread bet. Your loss or profit will be based on the difference between the opening and the closing bet multiplied by the value of your bet per point.