LONDON, April 25, 2012 /PRNewswire/ --
Spread betting forex is an excellent alternative to conventional forex trading, offering the added advantage of tax-free* profits and leverage.
The foreign exchange market is one of the most popularly traded markets in the world, with an average daily turnover exceeding US$4 trillion.
Keeping this in mind, it is hardly surprising that aspiring traders are keen to try their hand at forex trading.
What is forex spread betting?
Speculating on the forex markets with spread betting provider Finspreads enables you to increase your exposure to an underlying investment from a lower initial outlay; for example, a deposit of £100 might allow you to open a spread bet position equivalent to a £1,000 investment.
This leverage is great news if the market moves in the direction you expect, but it obviously carries a high degree of risk if the market moves against you.
Forex Spread Betting with Finspreads
Finspreads, a leading provider of spread betting in the UK, offers prices on thousands of global markets including indices, shares, commodities and forex. The online spread betting provider offers 24-hour prices on a range of currency pairs, including EUR/USD, GBP/USD and USD/JPY.
Here are some tips that will help you to get a foothold into the world of forex spread betting, so you can net a tidy profit from your forex trades.
Analyse: It always helps to put some thought into how you will be analysing the markets before you place a trade in the forex markets. Having an analysis plan, however simple, will help you to put some time into understanding factors that influence forex prices, instead of relying on rumours, gut instinct or intuition - often responsible for bad trading decisions.
Strategise: Trading plans or strategies are a great way of Identifying your profit and loss levels. This will help you to stay focused on making a profit so you can exit once you've achieved your goals and move onto the next trade without getting too attached.
Rationalise: Every trader should identify their maximum risk allowance (how much you are willing to lose) before placing a trade. This helps you to keep your emotions in check and cut your losses in case the trade goes against you, so you do not let the trade carry on in the hope that the loss will eventually turn into a profit.
Spread betting forex with Finspreads offers multiple benefits to traders, both new and experienced. Our three keys - Analyse, strategise and rationalise - will help you to identify a winning forex spread betting strategy, so you can make the most of your forex trades.
Learn more about spread betting on foreign exchange rates with Finspreads.
*Spread betting is currently exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax laws are subject to change and depend on individual circumstances. Please 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.