Can I make money Spread Betting?

Anyone can make money trading but you must remember that it is not a get rich quick scheme and unfortunately not everybody does. PATIENCE, DISCIPLINE and EXPERIENCE are key. It does not happen overnight but with practice and persistence it can happen. Here at CFD & Spread Bet Trading. we know many people who make a very good living from trading CFDs and Spread Betting. It would also help you a lot to sign up and begin receiving our latest trading insights Blog updates straight to your inbox.

What is the bid/offer and spread?

The BID is the price at which you can sell. The OFFER is the price you can buy. The SPREAD is the difference between the BID/OFFER.

Is there a way to limit risk?

All the Spread Bet brokers we work with provide different order types to help you manage your downside & upside. These include, but are not limited to, stop-loss, guaranteed stop-loss and limit orders.

Can you explain leverage/margin requirements?

Margin acts as a deposit on your trade. You need to keep enough money on account to cover any losses if the market moves against you. If your cash balance on top of your margin allocation reduces, you will be placed on margin call and asked to provide additional funds or reduce the size of your position. Without effective risk management, your losses could place you on margin call. The upside of leveraged trading is you can earn greater profits with less funds invested in your account.

What hours can I trade?

Most recognised Spread Bet brokers provide dealing services 24 hours a day.

What products can I trade?

The range of markets available these days is huge. Thousands of products are on most dealing platforms and will include, stocks, indices, FX, commodities, options, bonds, interest rates and ETFs.

What are overnight and financing charges?

Financing charges are due on most, but not all Spread Bet positions that are held overnight. The overnight cut off time varies from broker to broker and market to market, this should always be checked in the product information page on each trading platform. Due to spreadbets being margined products, you effectively borrow money to trade larger positions and as such will incur small charges, these charges also vary from broker to broker but are usually pretty similar. It should be noted that if you short/sell certain products you may receive interest from your broker.

Are the firms you trade with regulated?

Most certainly, we would never consider trading with a non-regulated fund and we would highly suggest you dont either.

Check out this wikipedia page for more info.

If you have any further questions that are not covered above, please do not hesitate to get in touch via e-mail, support@cfdandspreadbettrading.com .

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