04: Trading Shares versus Spread Betting

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Trading Shares versus Spread Betting. Connor Campbell Financial Analyst at Spreadex comments on the differences between trading shares and spread betting and the benefits and risks of spread betting over trading shares. Most people think of spread betting and CFDs as short-term trading instruments. But can spread bets be used to longer term trade the markets? Is it feasible to hold a long position for say 18 months? Advantages include the ability to speculate on rising and falling markets and the leverage that spread betting grants you not to mention the tax benefits. So what are the risks associated with spread betting? The main risk is that you could in theory lose more than the amount you deposit as margin.