FTSE Spread Betting
Do you currently invest? Have you got any money in UK shares? Well if you have then you may want to know a little bit about FTSE spread betting. This is a new way of getting exposure to the index. It has its advantages and disadvantages and we will go through some of these now.
The FTSE is the largest index on the London Stock Market. You will hear of it and see it being mentioned in the media. When you a doing FTSE spread betting you are making a bet on the entire index. This means that you need to think about more macro issues and not think too much about the performance of one or two companies.
But what if I only want to trade in one or two companies? Well in that case then FTSE spread betting is probably not for you. You may want to open a stockbroker account where you can trade individual shares or take advantage of financial spread betting areas.
So can I have a tracker instead of doing FTSE spread betting? Well this is definitely an option and for most people this will be the best option. The tracker will give you access to the whole of the index to without having to do much work.
So why would you want to do FTSE spread betting if a tracker fund would be more suited to most people. Well the reason is that FTSE spread betting has lots of other benefits. The first benefit is that you do not have to pay tax in the UK. This can also be true for trackers if held in an ISA.
Another advantage is that you don't pay commission on the trade so it means that you can start off small. You can also take advantage of leverage although you need to ensure that you understand the risks before doing so.
Please speak to your financial advisor if you are unsure of the rules relating to tax and to see if FTSE spread betting is a suitable route for you to take with your investing.
Article Source: FxTradingStock.com
About the Author
FTSE spread betting is an excellent method of trading on the money markets. For additional guidance about ftse spread betting then go to Tom's blog for lots more resources.
by: Tom King
Total views: 53
Word Count: 361
Date: Sun, 20 Jun 2010
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