Finding The Right Financial Spread Betting Broker

Financial Spread Betting

This offers an alternative to dealing in the traditional way in stock markets, fixed income markets, currency markets and commodity markets. What financial spread betting does is predict the price of a stated instrument or product at a specified time in the future.

There are a huge number of types of financial spread bets and the time period can vary from "day" bets (which cover a certain period in our day, normally the market hours of a particular instrument) to much longer periods. Remember it is important to be clear of the terms and conditions before making any spread bet. Always check and be clear about the expiry date and time of expiry on that date of any spread bet. (These may vary from company to company). Once you decide which instrument you would like to trade in you just need to call or request for on-line systems for a quote. Then you can make your bet.

Remember the normal principal still works, if you want to sell something then you sell at the bid price (the lower price) and if you want to buy something you buy at the offered price (the higher price). Never forget this rule, as it is the same for all spread bets.

The types of spread bets available are also increasing all the time as the spread betting companies compete for business. Listed here are most of the straightforward types of spread bets with working examples. With some of the new and more complicated types of spread betting we recommend an extra cautious approach. Make sure you are confident with the more straightforward type of spread betting before trying any of these. Remember any misunderstanding could result in large losses so once again we recommend paper trading (practice trading) first.

Setting Up a Spread Betting Account

Setting up a spread betting account (list of brokers - http://www.independentinvestor.com/brokers/spread-betting) is a very simple process and in most cases will only take 2 or 3 days.

A normal account will expect you to deposit a sum of money (margin) that will cover basically any bets in progress. If your current bets start to go against you, you will be called upon to deposit more money (margin) to cover the potential losses.

Credit accounts are available and they are generally offered on an individual basis, the amount of credit given governed by your own particular circumstances. As soon as the account is set up you may begin trading.