Spread betting is any kind of bet placed on a probable outcome from a certain event or group of events. It isn’t merely a simple bet that is based on whether there is a winner or loser like the kind of you would make on a sporting event as that involves fixed odds. The key term here is ‘spread’, with the concern being how wide the result may be. It has enjoyed much popularity in stock markets in the UK for the last few years, and there are an increasing number of traders wanting to partake in the action. There is a lot of risk in spread betting and the potential financial gain or loss can be more than the figure you bet with.
Financial spread betting on the FTSE is the act of trading spreads on what is regarded as one of the key players in the worldwide stock market. The London-based FTSE stands for Financial Times Stock Exchange and operates on a number of markets including some of the largest stock markets in the UK. It accounts for a large portion of the global daily trade and is among the more popular with traders everywhere.
When international traders spread bet on the FTSE, it results in more activity in the market for each side of the wager. So instead of a trader winning because of a specific bet, he can either win or lose more than the margins of the anticipated results. So this way, an increased number of bets can be placed on either the underdogs or the favourites.
Another advantage for traders who are playing on the FTSE is one that is related to paying taxes. In the UK, as well as in some countries in Europe, profits that have been made from spread trading are not subject to taxes. The only case in which that would occur is where monies earned from spread betting is their sole source of income. In comparison to other speculative financial instruments that are used in trading and stock markets, this is the most favoured and popular, due to the lack of liable taxes. On the other hand, this also means that if the trades should lose, the losses can’t be offset from their tax calculations based on further earnings.
Since April of 2009, there are a higher number of traders that are involved in spread betting on the FTSE. This concerns many as it has become more popular with internet-based traders who are not sufficiently informed on how to spread bet properly, which is why it is important that you learn all that you can on how it works and what tips and techniques will give you the greatest chance of winning. Fortunately, there is no shortage of information on the subject and traders are equipped with all of the market data necessary to make an informed decision for each trade. So much of that concern has been alleviated when it comes to traders who have shown willingness to learn and exercise a degree of patience.
A company named Cantor Index provides a trading platform that allows you to try your hand at financial spread betting on the FTSE. Part of the Cantor Fitzgerald Group, they are regulated and authorised by the Financial Services Authority. They are passionate when it comes to trading and their experience and knowledge of the market show through their dedication in helping the customer. Also provided are the latest trading platforms and technology as well as market news, live streaming charting and market analysis tools. These all help when it comes to making sound trading decisions.
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