Dallas Auditor .com

I have just been watching the Chancellor of the UK present the budget this lunchtime. Looking at the financial market now I can see that they have fallen by more than 1.5%. Most people who have stocks and shares will have lost money today but there is a way of making money during falling markets and that is through FTSE spread betting.

So what is FTSE spread betting? The name ‘betting’ gives it a bad name. Yes it is betting but so is all financial ‘trading’. What happens is that you decide which way you think the FTSE 100 is going to go and then you take a position either long or short.

There are 2 popular bets that you can use. The first is the binary bet. This is very similar to bets in the sporting arena where you know the how much you can we or lose before you start. It is on the more simpler ways of doing it.

The second way of FTSE spread betting that I will go through is the rolling daily bet. The daily bets are still more common than the binary bets although the binary bets are increasing in popularity. The main difference between the two is that with the rolling daily bet you win or lose depending on how right you were. If the FTSE moves in your direction a bit then you win a bit, if it moves in your direction a lot then you win a lot.

While this type of trading is very flexible it can be risky. This is because it uses leverage as you trade on a margin. This can be great when you are profiting but can be devastating if you make mistakes.

FTSE spread betting has disadvantages and advantages and it is up to you to decide if it is suitable for you. You may have seen that the Chancellor increase the rate of capital gains tax today. You will be please to know that spread betting is currently exempt from tax in the UK.

Are you keen on learning more about FTSE spread betting? If you are then please check out Tom’s site. He has combined all of his years of experience to put a website together that will help you in starting your FTSE spread betting career.