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Spread betting - why spread bet?

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Uploaded by on Nov 19, 2010

http://www.moneyweek.com/online-trading/spread-betting.aspx

Tim Bennett explains why you would using spread betting instead of buying shares.

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Education

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  • CO2TROL - no thanks.

  • LOL

    Suck My Balls!

  • sang3ETa. It's not as clear cut as you imply. Spread bets provide leverage and tax free gains. Spreads can also now be very tight on popular contracts and there's lots of competition amongst providers to win business which translates into some good incentives. CFDs are arguably a better hedging instrument but that's a separate debate IMO. Tim.

  • Downsides: You're playing a bookie, not the market. This means they can refuse to take the bet or refuse to pay a bet if they decide the market price was out of normal range. You do pay commision it's just hidden in the spread so you will have a wider spread than a share. Further widening the spread is the bookies odds. They don't like to loose and play both sides of the trade and to balance their book they will offer a better spread to the side with least takers. Use CFD's if you need leverage.

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