Six Main Motives Investors Pick Margined Trading
Financial spread betting is by far among the fastest growing derivatives within the trading sector. It allows the investor to trade in a variety of sectors while not actually having to own and hold onto the underlying assets. Through leverage plus margined trading the investor is able to trade in higher quantities using less capital; and can actually make gain the upwards or downwards movements on the market.
The spread better has the capacity to trade in various markets across the world. These include indices, commodities, equities, gold and silver, stocks or bonds, Forex and currencies. The trader has the option of taking a long position or going for a short position; and can actually make a profit by either.
Many reasons exist why financial spread betting is widely used by investors; listed below are the most common important aspects which draw investors in.
# Tax Free - although this could change anytime, right now there is absolutely no capital gains tax nor is there any stamp duty that must be paid on spread bet profits.
# No Broker Commissions - this also may change anytime, however currently spread betting companies do not charge commissions nor brokers fees.
# Closing trades to make profit or limit loss - The trader can close a position if they are holding a losing position thus ending additional losses; the greater can also close a position that’s being profitable, closing early will guarantee they keep the profit.
# 24 Hour Trading - Many markets in spread betting will be available Twenty-four hours a day; this is a key factor for many investors as they can trade from the comfort of the homes later within the day after the stock exchanges have closed down during the day.
# Insurmountable amounts of data - most spread betting companies may have numerous systems available for the clients; allowing them to view and analyze data for example historical charts, trends, technical analysis in addition to market sector information, and much more.
#Guaranteed Stop loss Availability - This can be a strategy to be used to protect your capital and it is used as risk management. A guaranteed stop loss will close your position at the exact time you place; whereas a stop loss order may have some gapping which could lead to additional loss.
As you can tell there is quite a bit of information that you must familiarize yourself with before beginning spread betting. If you wish, you can open a free demo account at numerous trading sites online; they give you ‘play’ money to try out your strategies and also to learn what works and exactly what does not.
can be both exciting and lucrative, but you must first learn as much as you can, and this includes topics such as .
