Financial Spread Betting a Good Option in Current Economic Climate

By mosesbet · Filed Under News Comments Off on Financial Spread Betting a Good Option in Current Economic Climate 

With the economy in the UK entering another round of recession, many traders have started monetizing big swings in price by using financial spread betting.

This option gives spread bettors an advantage over others who use only conventional trading options. Wednesday, the Office for National Statistics released a report that revealed there was a 0.2% shrink in the economy in January, February and March 2012. This was a carry over from a 0.3% drop in 2011 first quarter.

Uncertainty can Lead to Drop in Prices

Recession can create uncertainty in traders, as it can bring about a drop in prices and a negative GDP growth. With financial spread betting, traders can cash-in on the shift in prices. According to traders, a good way to do this is to use trading platforms that offer spread betting options. Finspreads, a spread betting platform based in the UK, gives prices on numerous financial markets. Some of them are commodities, shares, indexes and currencies. Traders in the UK have an advantage over those in several other parts in the world. They don’t have to pay capital gains tax or stamp duty.

Spread Bettors can Land Profits if Price Movement Prediction is Correct

While traditional forms of trading limit the extent to which traders can make the most of both rising and falling prices, spread betting allows them to take a position on both. This will give the chance to profit irrespective of the direction in which the prices shift. All that a trader has to is find out is which outcome has a strong likelihood – a rise or fall in prices. Based on this, he can take a position. In case the price movement is in the direction he predicts, he will get to land a good profit.

Finspreads is one of the leading providers of spread betting services online. One of the factors that has helped the trading platform gain this position is it offering of tools that enable all traders use its services. This includes a Trading Academy Course, that serves as a guide on spread betting. The education program can be availed by customers new to Finspreads.  In it are different aspects related to spread betting (financial) at Finspreads, like tactics and tips.

 

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