Basically, it’s a financial product that enables you to bet on whether a market rises or falls. So technically you can make money on a market which has decreased in value. As it’s a bet and not a trade you won’t lose money when the market falls.
Why is it so cool then?
- It’s tax-free! So absolutely not stamp duty or capital gains.
- Endless choices. Speed Betting gives you thousands of markets for you to trade on. For example, you can bet on shares like Google, Apple, Gold, Oil, FTSE, options.
- You don’t need a large sum to get started. £1000 could total £10,000 of shares.
Who would it work for?
Anyone.
Benefits of Spread Betting:
- You can trade 24 hours a day, even while you’re travelling
- Use leverage to maximise your profits
- Ability to go long or short
- Trade on a huge range of markets
- Tax-free profits
What are the risks? You can lose more than you make. It’s important to have a Spread Betting guide and Tips from people like us. We can teach you about leverage (vital knowledge) and how to avoid sticky situations.
What the hell is leverage anyway?
“If the share price was to rise from £5000 to £6000 you would gain £1000. This would be the same whether it was through stockbroking or spread betting. But the key difference is this – with stockbroking your initial outlay would’ve been £5000, but only £500 with spread betting. Your £500 in spread betting has gone ten times further than if you’d had bought the shares through stockbroking. In effect, leverage has magnified your winnings.” – reviews.spreadbetting
But it goes both ways, it can magnify your losses too.
Why doesn’t the UK tax betting or ‘spread betting’?
It simply wouldn’t produce any revenue. According to a Forbes article in 2013, it’s completely above-board and in fact like all types of betting, the winnings are produced by other people losses. Simply put, with the right help you would be walking away with a nice tax-free lump sum.
