Business & Finance Investing & Financial Markets

Major Reasons Why You Have to Go Spread Betting

In this day and age of stable and super-fast Internet connection, spread betting sites that specialize in the delivery of up-to-the-minute online trading application such as Tradefair, IGIndex and Capital Spreads are becoming the norms of mainstream online trading.
This trading software gives day traders of differing circumstances all the trading tools that they need in identifying clear and reliable indicators to sell or buy on a particular future market position.
This trading tool also gives day traders the all-important guide on various trading decisions including options to move for a trade, monitor progress and conditions in the market and exit from a trading position.
Spread betting offers these leverages to day traders without the consequence of broker commission, and all trading activities are done online.
Through financial spread betting, beginning and seasoned traders alike are given the wherewithal and capacity to trade on commodities like gold, oil and wheat and also on share indices like the Dow Jones and FTSE 100; all these trading activities can be done across a broad range of currencies.
One of the distinctive features of spread betting is that the financial spread is not subject to tax.
Here are the 5 major reasons why you have to go for financial spread betting: 1.
Easy to implement Financial spread betting is anchored on the general principle of making a bet on a specific stake per point.
This kind of system works well in practically all types of futures market and in all market conditions.
Initially, the system may appear to be complicated and tricky, but after going on a trial run, you will learn that it is a pretty simple system that even a newbie can follow without missing a beat.
2.
Minimal initial capital requirement You don't have to break your bank account to start with the system, and with a minimal amount of capital infusion, you can already go on spread betting.
In contrast to share trading, you won't have to concern yourself with broker's commissions.
This means that you don't get weighed down even if you go for small trades.
The incidental costs are already imputed in the spread size and remain the same across the trade range regardless of the size of your trade position.
3.
Absolutely tax-free trading system The financial benefits gained from this system are not levied with tax duties nor do you have to pay stamp duties every time you make buy.
This translates to windfall profits especially when you are making financial headway and breaking the capital gains threshold.
However, you have to closely monitor possible changes in tax laws to ensure that you are on the ball with regards to the real earning potential of your trading position.
4.
Currency fluctuation shield When you make the buy in countries with different currencies from your account, then you are exposed to an additional risk due to potential dips in the currency value.
On the other hand, when you engage in spread betting, your transaction is played out on the point-on-point shifts, and the currency factor is not included in the trading equation.
The good thing about this system is that you have the leverage to play the dips and peaks of the currency on which you are making the trading position.
5.
Diversity in application This type of trading system allows you to play with your stakes on different markets using a single spread betting account.
This means that you have to flexibility to go for individual equities, both local and foreign, currencies, house prices, commodities futures, interests and bonds.
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