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Beginners Guide to Spread Betting New to Spread Betting? The Spread Betting Trading Centre has compiled the following guide
to explain how Spread Betting works Understanding Time Constraints One of the main differences between Spread Betting and ordinary betting is timing. If you place a bet (for example) on a horse race, once you have chosen a bookmaker and placed your bet there is nothing to be done until the end of the race when you find out whether you have won or lost. With Spread Betting, the trader does not wait for a specific outcome in terms of a figure or result. He bets that a price will either rise above or fall below that which the Spread Betting company has quoted. If things swing in the trader’s favour, the bet can be closed before the quoted end date so that he can collect the profit. Similarly, the bet can be closed to stop losses from snowballing if the prices move against him. This gives the trader more control over profits and losses. |
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