Spread Betting Risk and Advantage

Spread betting is the most hyped and safest way to trade. Originally derived from UK, the trade was combined with sports betting and offered by the financial markets. Financial experts later realized that financial betting can be the powerful and lucrative way to earn from trading. Spread betting is quite similar to traditional shares and is entirely based on the current market price. The best way to get positive return for long term is by getting the service from prominent online trading company. ETX Capital is known for offering spread betting service for its customers.

Financial spread bet is considered as easy way to speculate the rise and fall of stock price. It allows the traders to predict how much profit or loss will take place on the rise and fall of the market. Let us now check the advantages and risk involved in financial spread betting:

Financial spread betting is not cup of coffee for every trader. However, you also should not be the seasonal trader, but a good research about the product you are betting on is important.


Some of advantages of conducting spread betting are:

  • Whether you go long or short, the profit from both may rise and fall.
  • No dealing fee is involved because there is no broker involved
  • By trading on margin the trader will earn maximum profit
  • Trader will have free demo accounts that allow to financially spread bet.

Risks on Spread Betting:

Like every other trading, the spread betting also has some risk if done wrongly. One of the major risks in financial spread betting is the loss due to leverage which can create attracts more loss than the initial investment. So the best way to avoid the loss is to bet only the amount that you can truly afford to lose.

Moreover, having knowledge of in and out of trading business will also help in avoiding the loss and getting the best result in terms of finance.

The best way to avoid the loss in financial spread betting is by seeking advice from expert. An expert provides complete assistance right from the selecting the trading stock to betting on right spread. Following the right strategies throughout the betting will gain you profit. Some of the tactics that can be used are:

  • Start Slowly: Go step by step before you opt for trading on any stock. Following the right stock on which you are comfort to trade with and gain good profit out of it.
  • Learning through Social Trading: Researching for new trade is the best way to earn profit for long term. Trading can be tempting, but if you avoid the mistake and learn from social trading.

There are few other strategies too like using of stop-loss, stick to manageable level at risk etc. and will certain be the part of smart trading.

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