PRN: Why Traders Choose Spread Betting Over Standard Trading

As an alternative to standard trading, spread betting offers multiple features such as leverage, the ability to profit from a falling market and instant access to over 12,000 markets.

Persone Today
Luoghi Londra, Regno Unito, Morava, Wé, London
Organizzazioni ProfitsÂ, Commission Leveraged Trades Ability
Argomenti borsa, economia

01/mar/2012 09.30.27 PR Newswire Turismo Contatta l'autore

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Why Traders Choose Spread Betting Over Standard Trading

 
[01-March-2012]
 

LONDON, March 1, 2012 /PRNewswire/ --

Spread betting allows trades to be made on the price movements of a wide range of financial markets including indices, shares, currencies, commodities and more.

As an alternative to standard trading, spread betting offers multiple features such as leverage, the ability to profit from a falling market and instant access to over 12,000 markets.

Profits made through a spread betting account are free from both Stamp Duty and Capital Gains Tax*.

The following features are exclusively available to traders choosing spread betting:

  • Free from Stamp Duty*
  • Free from Capital Gains Tax*
  • Free from Commission
  • Leveraged Trades
  • Ability to go Long and Short

Traders will also have access to standard trading features when spread betting, such as:

  • Access to Global Markets
  • Immediate Dealing
  • Mobile Trading
  • Comprehensive Charting Package
  • Real Time News

*Currently in the UK, all spread bet gains are free from Capital Gains Tax and as a derivative product; it is also exempt from UK stamp duty. UK Tax laws are subject to change and may differ depending on individual circumstances. Please seek independent advice if necessary.

Leverage

Spread betting is a leveraged product, requiring traders to deposit only a small percentage of the full value of their position - otherwise known as margin.

The margin feature typically requires between 1% and 10% of the total value of a position, depending on the market a trader wishes to trade.

The potential for both profits and losses from an initial capital outlay is significantly higher than in standard trading with spread betting. It is important to remember that losses can exceed the initial outlay.

Profit from A Falling Market

Spread betting allows traders to gain exposure to movements in the market that both rise and fall.

If a trader thinks the markets are going to rise, they can choose to go long on the price and buy. Profits will rise in line with any increase in that price; however, their losses will also increase in line with any fall in that price.

Alternatively, if a trader thinks the financial markets will fall, they can choose to go short on the price and sell. Profits will rise in line with any fall on that price, whilst losses will increase with any rise in price also.  

Spread betting is one of the few forms of trading that enable traders to profit from falling market prices.

Summary

As an alternative, spread betting offers multiple features in addition to standard trading. Traders choosing spread betting can benefit from tax free* profits, high leverage and exposure to over 12,000 financial markets.


About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.

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