LONDON, March 8, 2012- Spread betting [http://www.cityindex.co.uk/spread-betting ] is one of the most
accessible forms of trading the financial markets due to its low margin and high leverage
feature, ultimately providing an easy entry level for new traders.
Currently in the UK, spread betting is a tax-efficient way of trading the price
movements of thousands of financial markets globally as all gains are free from UK Capital
Gains Tax. However, UK tax laws remain subject to change and may differ depending on your
individual circumstance.
By spread betting you have the potential to profit from a falling market by going
short and selling. With every point a market falls, you make a gain. Comparatively, each
rise in the market when you go short or sell would net you a loss.
As mentioned above, as a leveraged product you only need to deposit a small percentage
of the total value that you wish to trade, making it a popular choice with new traders.
These traders can potentially magnify their gains, yet this is a double-edged sword as
they can also magnify their losses; sometimes exceeding their initial deposit.
It is imperative for traders to fully understand the risks as well as the rewards when
placing trades.
Here we look at five spread betting tips to help you simplify your trading experience.
Stop losses
Stop losses limit your downside potential by automatically closing a spread bet as
soon as the market passes through your pre-determined trigger value.
Guaranteed stop loss orders are the most efficient risk management tools compared to
standard stop loss orders, as they guarantee to close your trade at the exact trigger
value you have set, even when market gapping occurs. There is a small charge for
guaranteed stop losses however and they are not available across all markets.
Mobile trading
With many markets available to trade 24-hours a day, such as foreign exchange, mobile
trading [http://www.cityindex.co.uk/trading-platform/mobile-trading-platform.aspx ] is an
effective way to keep up-to-date with your chosen market's developments whilst allowing
you to make trades instantly and securely.
Market commentary
With so many markets to choose from, it is central to your trading strategy that you
know all you can about those that you decide to trade.
The daily market commentary
[http://www.cityindex.co.uk/market-analysis/market-commentary.aspx ] from the financial
trading experts at City Index will help you to analyse the spread betting markets and take
a clearer view on the direction of future price movements.
Education Tools
Through City Index, traders can access free seminars, webinars and a 14-day demo
trading account [http://www.cityindex.co.uk/learn-to-trade/demo-account.aspx ] designed to
help hone analysis skills and trading strategies without risking capital.
Learn more about spread betting and CFD trading at http://www.cityindex.co.uk
Spread betting and CFD trading [http://www.cityindex.co.uk ] are leveraged products
which can result in losses greater than your initial deposit. Ensure you fully understand
the risks.
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