LONDON, April 23, 2012 /PRNewswire/ --
Some people like to delve head on into the world of financial spread betting, placing trades based on intuition and then waiting it out to see whether the risk has paid off.
Most others, however, err on the side of caution, preferring to dip their toe into the financial markets first, before determining whether they should stay on and continue to trade.
UK based spread betting provider Finspreads offers aspiring punters a chance to test drive the spread betting markets with low stake sizes, starting from just 10p per point, so you can first try your hand at trading with very small trade sizes, before taking the leap on the deep side.
A great way to explore financial spread betting
Financial spread betting is an alternative to more conventional forms of trading, enabling you to take a position on the markets irrespective of whether they are rising or falling. This means that you can speculate on the markets and potentially profit even when prices are in decline.
All you need to do is determine whether you believe the market, say the FTSE 100 for example, will rise or fall in the near future and take a position accordingly. You stand to profit so long as the markets move in the direction you had expected. For example, let's say the FTSE 100 is currently trading at 5701.5 and Finspreads is offering a price of 5701/5702. If you think the FTSE 100 is set to rise in the coming days, you go long (buy) £1 per point at 5702 If, on the other hand, you believe that prices will fall, you go short (sell) £1 per point at 5701.
Profits and Losses
If you were right and the index moves in the direction you had predicted (ie it rises in this case), you make a profit for each point that the FTSE moves in your direction, multiplied by your stake. If however you were wrong and the market moves in the opposite direction, you make a loss for each point that the market moves against you, multiplied by your stake size.
Low stake sizes with Finspreads
Financial spread betting provider Finspreads offers especially low stake sizes to new clients, starting from just 10p per point, for the first eight weeks, so traders can learn the ropes of financial spread betting in bite sized pieces.
Find out more about financial spread betting with London-based provider Finspreads.
Spread betting carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.
Finspreads is a leading online financial spread betting firm, offering access to thousands of instruments on the world's financial markets.
The company pioneered fully interactive online spread betting in 1999 and continues to invest in technology to ensure that its service remains amongst the market leaders.