FTSE Spread Betting Guide

I am writing this after just watching the emergency budget being presented to parliament in the UK. As I return to my desk to view the financial markets I see that they are down by over 1%. For most people this is bad news, but for people who do FTSE spread betting they can make money in falling markets.

The vast majority of people don’t know what FTSE spread betting is or how to do it. It is different to owning actual stocks because you make a bet of the direction of the market. You go either long or short depending on which way you think the market is moving, long if you think up and short if you think down.

You can bet in a couple of different ways and you should choose one that suits your personality. The first style is called a binary bet. You decide how much that you want to stake and then when the markets close you will see how much you have won or lost.

There is an alternative way of FTSE spread betting and that is through the daily bet or the rolling daily bets. Probably the biggest difference between both bets is that the daily bets aren’t fixed in the amount that you can lose or ineed profit. With the binary bet you win the same amount no matter if you were just right or very right. With the daily bet options you will win a lot more being very right than being just right.

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.

It is up to you to decide if FTSE spread betting is suitable for you. It does not attract and tax including capital gains tax (CGT). As the Chancellor put up CGT earlier today it does make it more appealing.

FTSE Spread Betting Options

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. Most people who are invested in the stock market will lose money as a result of this. There is a way of making money when the market falls and that is through FTSE spread betting.

A lot of people don’t know what FTSE spread betting is. It is a way of trading the financial markets which is a bit different from owning the actual shares. You decide which way the market will go then you make a long bet if you think it will go up or a short bet if you think it will go down.

There are 2 popular bets that you can use. The first is the binary bet. This is very similar to bets in the sporting arena where you know the how much you can we or lose before you start. It is a very transparent way of doing it.

The second way of FTSE spread betting that I will go through is the rolling daily bet. The daily bets are still more common than the binary bets although the binary bets are increasing in popularity. The main difference between the two is that with the rolling daily bet you win or lose depending on how right you were. If the FTSE moves in your direction a bit then you win a bit, if it moves in your direction a lot then you win a lot.

Trading this way gives you great flexibility but at the same time it can be very risky. You trade on a margin so you are using leverage. This means you can lose more than your initial deposit if you get it wrong.

There are advantages and disadvantages to FTSE spread betting. Another advantage is that it doesn’t incur capital gains tax in the UK. Capital gains tax was increased in the budget today so makes this more appealing.

FTSE Spread Betting Options

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. Most people who are invested in the stock market will lose money as a result of this. There is a way of making money when the market falls and that is through FTSE spread betting.

A lot of people don’t know what FTSE spread betting is. It is a way of trading the financial markets which is a bit different from owning the actual shares. You decide which way the market will go then you make a long bet if you think it will go up or a short bet if you think it will go down.

There are 2 popular bets that you can use. The first is the binary bet. This is very similar to bets in the sporting arena where you know the how much you can we or lose before you start. It is a very transparent way of doing it.

The second way of FTSE spread betting that I will go through is the rolling daily bet. The daily bets are still more common than the binary bets although the binary bets are increasing in popularity. The main difference between the two is that with the rolling daily bet you win or lose depending on how right you were. If the FTSE moves in your direction a bit then you win a bit, if it moves in your direction a lot then you win a lot.

Trading this way gives you great flexibility but at the same time it can be very risky. You trade on a margin so you are using leverage. This means you can lose more than your initial deposit if you get it wrong.

There are advantages and disadvantages to FTSE spread betting. Another advantage is that it doesn’t incur capital gains tax in the UK. Capital gains tax was increased in the budget today so makes this more appealing.

FTSE Spread Betting Guide

FTSE spread betting has some advantages and disadvantages when comparing to other method of trading the index. We will look at some of those now and hopefully you should get a balanced opinion on whether it is suitable for you.

So what it FTSE spread betting? It is the performance of the FTSE that you will be betting on. This is a well known index in the UK made up to large firms. You therefore aren’t really interested how shares do on an individual level. You are more concerned with the overall movement of the market.

So what if I am in a position where I like to invest on a company level? Well in that case then FTSE spread betting is probably not for you. If that is the case think think about opening a normal stockbroker account or even do some financial spread betting for individual shares.

How do trackers compare to FTSE spread betting? Well both have exposure to the index but they are very different. A tracker is a great option for those people who do not really want to take an active position in their trading.

Now you I am saying that you may be more suited to a tracker, why am I still talking about FTSE spread betting? There are many benefits to FTSE spread betting. Firstly you don’t have to pay tax on your profits. If you hold trackers in an ISA then this is potentially true for profits.

Other benefits incluse having the ability to trade in other markets from the same account, having small captial requirements and being able to use leverage. Please note that using leverage can be risky.

If you are unsure of any of the tax rules or whether that FTSE spread betting is for you then make sure that you speak to a financial advisor before trying it.

FTSE Spread Betting Explained

Have you ever heard of FTSE spread betting? Well if you have any exposure to the index you should at least know something about it. The are many advantages and some disadvantages. I want to tell you about these and how you can decide if it is for you.

I am sure you know what the FTSE is. It is reported in the media every day. It is the main market in the UK. It is compiled from the largest shares in the UK stock market. When you are taking advantage of FTSE spread betting you are exposing yourself to a large number of shares and not just the movement of the individual companies.

FTSE spread betting is probably not suitable for you if you would prefer to trade individual shares. You could take advantage of some of its benefits through financial spread betting. But why not do both? Get exposure to the entire market and trade separate stocks. It’s potentially a good way to diversify.

Is it possible to just have a tracker rather than worrying about FTSE spread betting? Well this is definitely an option and for most people this will be the best option. The tracker is great if you are a passive investor. You don’t have to do any work or research.

So why would you want to do FTSE spread betting if a tracker fund would be more suited to most people. There are lots of other advantages when it comes to FTSE spread betting. The first benefit is that you do not have to pay tax in the UK. If you hold them in a ISA then this is potentially true on the profits.

The other advantages include being able to trade in many different markets from the same account, not having to pay commissions and being able to trade on a margin. It is a risky option trading with a margin because of leverage.

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.

FTSE Spread Betting Options

I have just been watching the Chancellor of the UK present the budget this lunchtime. A quick look at the markets and you will see that they are down by 1.5%. Most people who have stocks and shares will have lost money today but there is a way of making money during falling markets 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. The binary bet will suit you more if you just want to be rewarded for either being right or wrong. It is very similiar to that of fixed odd betting you get in sports as you know exactly the amount you can win or lose before you initiate the bet.

The other bet that you can use with FTSE spread betting is daily bets or rolling daily bets. These work differently to binary bets as the amount you can lose or win will vary depending on performance. 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 trading does give you flexibility but it does have its risks. This is because it uses leverage as you trade on a margin. This can be great when you are profiting but can be devastating if you make mistakes.

FTSE spread betting has disadvantages and advantages and it is up to you to decide if it is suitable for you. You may have seen that the Chancellor increase the rate of capital gains tax today. You will be please to know that spread betting is currently exempt from tax in the UK.