The time in which the wager is laid – for example spreads may be less beneficial to those placing a wager during the first hour of the trading dayĢ. A wager with guaranteed “stop” losses in place – which means that the agent automatically closes the bet should the spread move significantly against the gambler’s specified rangeĬ. A wager placed outside standard market hoursī. The sizes of the spreads will vary for many reasons, but usually due to:Ī.

Typical spreads are quoted per the agency.

It is significant to note that financial spread betting is “off” of the exchange and that the contract is drawn between the client and spread betting companies. For instance, over the past decade the standard points spread for an index like the FTSE 100 was around ten points, but currently that has dropped to roughly a two-point spread. Because the number of agencies taking financial spread bet has increased, the spreads have come down. This is one approach that many IT, financial, and insurance experts are using to enhance their portfolios in the current market conditions. This is far different from actual investing and trading because losses are not sustained by a stock or trade losing value, instead the savvy gambler makes money if prices drop. Should this stock decrease in cost or value, the gambler is likely to win their wager.

You contact one of many spread betting companies and discuss your options for placing a wager. You believe that one in particular is going to drop significantly over a single day or set period of time. Need an example? Let’s say you have been monitoring twenty to twenty-five stocks for a few weeks. What they are wagering on is the movement that they expect the specific stock to make. Financial markets spread betting does involve the value of a market or a specific company, but the individual laying the bet is not buying shares. The flip side however is that potential losses on a single bet are also unrestricted and may be an unknown quantity before the event.īefore you stop and say “I’m not interested in risking money in the markets” it is important to note that you aren’t actually doing any investing when you participate in spread betting of this kind. Spread betting allows the punter’s successes to be amplified inasmuch they are not restricted by predetermined odds. If you are an avid gambler or someone involved in the world of stocks and trading, you may want to turn some attention to the twenty-plus spread betting companies now actively operating in the United Kingdom.

Online spread betting