Financial spread betting is gaining popularity in the UK. There are several reasons and advantages for the rapid rise in this area.
Profits are Tax Free
All the profits are free of Capital Gains and Income Tax. These profits are recognised as the winnings of a bet thus free of tax. But tax laws are subject to change.
Opportunity to make money either in Bull or Bear situation
Another obvious advantage of this financial investment instrument is the opportunity to make money even on falling market. You have the option to go short of a stock or share. Thus, you can experience the benefit of either a rising or falling market.
Limit your risk
It is a high-risk activity. There is every possibility to lose more than the amount of your bet. Therefore some financial betting firms provide stop-loss facility to limit your risk. The stop-loss tool is very important especially in a volatile market situation.
Gearing
You are allowed to trade in sizes smaller than those usually available in the underlying market. Similarly, you may also benefit from an opportunity to trade in larger positions than are normally permitted in the underlying market, without depositing large sums of money.
Wide range of market
Spread betting companies provide wide range of markets for bets on stocks, currencies, options, interest rates and commodities. Some also offer markets for football, horse racing and rugby.
No commission
All the costs are built into the bid-offer spread. It is much more cost effective for someone who is looking into buying or selling, three, four, five times a day.
These are some of the advantages of financial spread betting.
You can learn financial spread betting from Daniel's financial spread betting companies blog.
Article Source: http://EzineArticles.com/?expert=Daniel_Weber
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