Spread Betting Calculator

Some spread betting is advertised as a tax-free and commission-free activity, which makes it very popular among investors. It's also a leveraged product, which is great for investors with a minimum budget. But, it also increases the damage when the investors are losing. Another disadvantage of spread betting is during a volatile period, it's possible that the broker expands the spread, which will trigger stop loss orders and increase the trading fee.

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In short, spread betting is when investors place a bet or speculate on the price movement of a financial instrument. They will open a position based on where they think the price will move. For example, if they believe the price will go up, they will open a buy position.

On the contrary, if they believe the value will decline, they will open a sell position. Investors are allowed to speculate on different kinds of assets' price movements such as forex, stocks, and even commodities. They can also choose how much they are willing to risk.

Continue Reading at Forex Brokers Offering Spread Betting

The amount they want to bet per point of movement in price is perceived as "stake". They will get profit from per point difference between the market price at the close of the trade and the initial buy/sell price when they opened the position, multiplied by their initial stake size.

For example, if you thought a currency pair would rise, you could go long and place a stake at £50 per point of movement. If your prediction was right and the price ended up rising by, let's say, 10 points, then you will get £500 profit from the trade. If the market goes against your favor, your loss will be calculated the same way.

Continue Reading at Comparing Forex Trading and Spread Betting

First of all, in both forex trading and spread betting, you can either go long or short with the asset. This means you can take profit in any type of market.

In spread betting, the trader should predict whether they think the market will rise or fall, so it doesn't matter where the market is going as long as it matches with the trader's prediction. Similarly, in forex trading, traders can take profit in any situation. Another similarity is that you can use leverage on both forex trading and spread betting.

Continue Reading at Comparing Forex Trading and Spread Betting