The purpose of Spread Betting
Posted by | Posted in Day Trading | Posted on 14-10-2009
The purpose of investing in any market is to make money, this isn’t rocket science. No one wants to lose money whether investing in shares, gambling on poker or betting on the horses. Therefore it is important to understand the purpose of spreadbetting to help you avoid loosing money. While no amount of learning will ever guarantee you won’t lose money, understand the method and the premise behind spread betting will help you a long way. The purpose of spread betting is to basically predict the movement of a particular market. For example if you think a market is set to rise you ‘buy’ at the top end of our quote (the offer price), or if you think the market will fall you ’sell’ at the bottom of our quote (the bid price). Speculating the movement of a market takes understanding, so the more seminars you do to understand the purpose of spread betting, the better spread better you’ll be.
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