FTSE Spread Betting System
The Chancellor of the UK has just finished reading the emergency budget to parliament. I look at the financial markets and they are down quite a bit. This is bad news for most people because they will lose money. There is a way of making money when the market falls and that is through FTSE spread betting.
So what is FTSE spread betting? The name 'betting' gives it a bad name. Yes it is betting but so is all financial 'trading'. What happens is that you decide which way you think the FTSE 100 is going to go and then you take a position either long or short.
There are also different types of bets that you can put on. If you want to be rewarded for just being either right or wrong then you can put a binary bet on. This is a bit like sports fixed odd betting as you know exactly what you will win or lose beforehand.
The other bet that you can use with FTSE spread betting is daily bets or rolling daily bets. This is slightly different to binary bets in that you don't know how much you will win and lose beforehand. This amount is determined by how much the market either moves in your favour or against you. Either you are very right and win a lot or you are very wrong and lose a lot.
This can be a really great way of trading but if you get it wrong you may end up losing a lot of money. This is because you are trading with leverage and can lose more money than you initially put down.
FTSE spread betting has disadvantages and advantages and it is up to you to decide if it is suitable for you. I did notice the Chancellor did put up capital gains tax but spread betting is currently exempt from that in the UK.
Article Source: FxTradingStock.com
About the Author
Get further information about FTSE spread betting go to Tom's blog. There, Tom will explain the key concepts to more advanced FTSE spread betting strategies.
by: Tom King
Total views: 51
Word Count: 328
Date: Wed, 14 Jul 2010
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