This type of account requires you to deposit funds in your spread betting account prior to commencing trading. This balance will then used to fund your margin requirements when you trade. Profits/losses from your spread trading are added/deducted from this balance. This balance may be referred to as Equity Balance or Cash Balance.
This type of account is normally for the more experienced trader. No deposit is required and if you are successful in achieving credit status then you must be aware that you will have a limit and that any losses above this limit must be settled immediately.
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Companies will normally require evidence of liquid risk capital in a multiple of your requested credit allocation to allow you a credit account...
This type of account is similar to the Standard Account but restricts you to placing trades with a Guaranteed Stop Loss (Controlled Risk Bet). In other words, when opening a trade you must specify a stop to cover the maximum possible loss in the account. The stop will be guaranteed by the spread betting company whatever the circumstances.
It will take a few days to set everything up, and open your spread betting account. Once everything is complete, you will often be sent Handbooks and/or Dealing Guides along with Account Number and User Name and Password information that you will need to access on-line trading. If you have deposited funds by cheque, you may have to wait an additional day or two for your funds to clear. As a rough guide, you should allow two weeks from sending your application form to being fully prepared to place your first trade.
Opening a spread betting account is similar to opending a bank account. You provide your chosen spread betting company with your personal details such as name, address, contact number, employment and banking details.
Processing your application form can take 24 hours or more so you cannot start trading immediately. Your spread betting company will want to check your credit history (in the case of a credit account) and double check the information you gave them.
Some spread betting firms, however, may allow to start trading before the verification process. This happens if you are going to use a cash account (i.e. the standard account as opposed to the credit account) or if you are looking at starting with a small amount of capital. e.g. GBP100
Either way, a one or two day difference is inconsequential compared to other criteria by which you are going to choose your company from.
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