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Spread betting is another type of derivative, allowing traders to earn money on price differences or price trends to be more precise. Like many other derivatives, spread betting comes in the form of contracts that are relevant for a particular period. Spread betting can be done with FX currency pairs, stocks, indices, and many other types of assets.
Spread Betting ABC
As you may guess, spread betting is directly connected to spreads (the difference between the Bid and the Ask prices). To be brief, spread betting allows you to bet on the price to increase or decrease within a particular period. Those contracts look similar to binary options as well.
To start trading with this type of contract, you can search for special spread betting brokers. However, those derivatives are also available in portfolios of the most notable European Forex brokers. So you don’t need to do a deep market scanning to find spread betting opportunities.
Spread Betting: Trading Background
Like any other type of trading, spread betting requires previous trading experience and skills before you are able to trade profitably. The main idea is to find out future price tendencies. Thus, you need to be a skilled trader to find out current market trends.
What is spread betting, and how to earn money using those contracts? First and foremost, you need to learn the basics of financial markets. Knowing about the main price drivers will help you to better understand how to act in a particular situation.
Moreover, traders that try those spread betting contracts should also be aware of market analysis tools to create their own strategies. Using special trading tactics will help you to place orders in a precise and accurate way.
Spread betting involves proper money and risk management. You should carefully plan your trading. Otherwise, you may lose more than you can afford.
Spread Betting Platforms
This type of trading is offered by many brokers nowadays; however, not all of them provide their traders with top-notch services. Our experts can recommend IG Markets and AvaTrade as the best spread betting platforms, which are regulated in various jurisdictions, including the United Kingdom. IG and AvaTrade accept traders from Europe, Asia, and some other regions. Apart from trading opportunities, those companies offer many other features, including deep educational programs, market research features, a variety of trading platforms, and instruments to benefit from.