There are some trends nowadays develop for people all across the globe to try on the financial spread bet as their other option beside trading the currency market directly. Financial spread betting is product that already well-known in the UK for quite some times now and it's now begin to introduced worldwide as one derivative product that can deliver us great profit when done properly.

What is financial spread betting anyway? It is a derivative product that gives the traders chances of profit gaining from the range differential of some financial instrument such as shares, indices, currencies or even commodities. There is also no obligation for the traders to take any physical ownership of the securities whatsoever in this spread betting activities.

So this type of betting activities let traders to bet on the price of the above products, either they would rise or fall. Whenever the trader betting on the correct move for example, trader bet for price to rise and the price did rise after some period of time, that trader wins the bet and he receive profit and vice versa, if the trader have wrongly guessing price movement of particular product, he losses the bet and pays the betting company.

Now for the stake of which you can take for each bet will depend on you entirely. Let's say that you are betting one pound into one financial product like Google shares for instance, you will either get one pound or lose one pound per direction that you choose for that product. If you buy Google share for one pound, whenever the share moves up one point, you get one pound and vice versa.

Profit and loss are calculated per product at stake and the total price differential from the open to the close of the price. So if you are betting Google will moves from 7000 to 7100, you would have gain or loss 100 points at one pound per point, if one point is equal to one pound then you would have gain profit or lose 100 pounds per that order.

Spread betting leverage allows traders to take positions far in excess their initial stake. You should be very careful of using leverage as it is a double-edged sword meaning that it can help you to take stake that is larger than your own capital but in the other hand, it can be very dangerous too if not use properly.

So for every trader or bettors that currently still new in this kind of gambling arena, I suggest that you really learn your way first, take some trading education, experience some live trading activities in the old markets way before you ever try to conduct spread betting in real-time because it is far more dangerous than any kind of gambling types because you can't just stop when you become addict to it.

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