Is Spread Betting for me?

Those who have learned about the basics of Spread Betting may be interested in the concept and the goal of making money through Spread Betting but are unsure whether the opportunity is for them. Today we are going to examine whether Spread betting presents a good opportunity for you as an individual.

Remember as with all types of trading Spread betting carries significant risk. When it comes to spread betting everyone’s first rule should be not to risk what they cannot afford. It should also be noted that not everyone is suited to the stressful and tough world of trading. I personally wouldn’t suggest Spread betting to some of the more sensitive souls of this planet. But for the right person a venture into trading could be a very profitable one.

Some even find that trading can be a very addictive activity and every spread better should seriously evaluate what is driving them on to keep up at the activity. A study undertaken by Gambling commission revealed that when it came to financial spread betting 15% of people became addicted when compared to 1% with other forms of gambling. Another study undertaken by London’s CASS business school showed that only 1 in 5 people came out as winners. Though it should be remarked that this is no lower than the rates experienced in other forms of casual trading, such as small stockholders and people undertaking share deals.

When stepping into the world of spread betting, the risk you take should proportionate to the knowledge and experience you have of the financial services industry. Lucky spread betting allows be people to be exposed to very limited risks from 1p per point and many sites offer demo and practice accounts which can be opened for free, to allow users to gain real trading experience with no risk. There is also a wealth of resources available for those who wish to learn more and try different techniques.

Be realistic with your expectations. If you have a busy career with much of your day taken up with other commitments, you may want to limit yourself to one open position a day. If you have a lot of free time you may want to monitor and manage more positions at a time.

Spread betting is not just for those who work in City jobs or the financial services industry, a customer survey undertaken by ETX Capital showed that only 8% of their members worked in the financial services sector. Though clearly having a background in financial services may come in very handy for those interested in Spread betting.

Don’t enter blindly and take your time to learn, know your limits and Spread betting could become a very rewarding opportunity for you. But you should also be ever vigilant of the risks that you are taking. 

Part of The Beginners Guide To Spread Betting

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