The subject of spread betting is regularly hitting the headlines these days. For a thrill seeker, the way spread betting helps are right predictions earn more rewards.The other great thing about this trading product is that it allows you to profit from both up and down market movements. However it is not a trading activity that should be embarked casually or without understanding the market or trading product workings as it can lead to much bigger gains or losses than the initial amount invested.
Easy basic principle to understand.You choose a market – stock, indices, currency, gold, oil,..etc and decide on the market direction. Rise of fall in the market is calculated unit wise, which leads to points. A point represents the minimum value a market could rise or fall in value and usually starts at $ 1 per point. If you bet on the rise of a market, the difference between your starting price and your finish exit entry market point is multiplied with the point value. Profit or loss is determined in this manner.
Spread trading provider will guide in starting with spread betting. Make sure it deals with the markets you are interested in and offers you competitive margins. Step into trading in markets in which you are familiar. When you do not have sufficient knowledge about currencies and jargon terms, better go for trading course.People are facing this biggest problem.Few people only understand the markets fully and its principles but all have idea. Spread trading is a kind where experienced are bearing loss and beginners should be very careful.All spread betting providers are not equal we have to compare
ETX capital is one of the successful providers.For a beginner, this name does not represent anything at all, therefore it is good for us to narrate a little bit of its history. Founded in 1973 as Monecor Ltd., the very fact that the company has been in the market for a number of years should be a positive point as most rogues don’t live that long. When u become familiar with the industry you will notice new companies come and disappear just as fast.A betting company that is regulated by the FSA to ensure the business for the long term.
The minimum value for a point in IG Index is just of 10p. With such low stakes, prospective spread traders and investors can test and improve their skills without worrying too much about losing vast amounts of money, although then again there’s not a great chance you could transform it into a fortune. To open a trial accounts, Capital spreads and CMC markets provide. Trading this way using a demo account or simulator allows you the ability to test the trading platform albeit this doesn’t come with the tension and psychology that comes when dealing with real money.
ETX capital puts lot of focus on education and provide free book. When real money is involved, education is extremely important. The website for ETX Capital, the layout and trading platform is modern, fresh and definitely worth trying out. Mobile trading with advanced charts, platform is user friendly and customizable.
Author is an expert writer on compare spread betting and ETX Capital Review.