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15 Golden Rules for Spread Betters

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by Andy Richardson
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  1. Spread betting is more accessible for new investors that CFDS, but less cost-effective.

  2. Start by making small bets on popular financial instruments as you get used to the market.

  3. Place your bet only when you thing that the underlying financial instrument will move up or down sharply.

  4. Place daily bets only if you can constantly watch your screen.

  5. Place option-based bets as an indirect way to trade options.

  6. Use a financial bookmaker that quotes firm prices on a screen.

  7. If you close the deal by telephone, state your requirements accurately and don’t expect advice. Check your contract note carefully.

  8. In placing your bet, use a guaranteed stop loss and perhaps a limit order.

  9. You could place a stop loss and a limit order simultaneously, so defining the perimeters within which you will make a profit or loss.

  10. Arbitrage is sometimes possible, but you will need accounts with several spread betting firms, and to be quick off the mark.

  11. Spread-betting profits are free of capital gains tax, but this will not effect the majority of punters. The tax advantage may disappear if the trader derives his or her whole income from spread betting.

  12. Most who trade with spread betting firms lose money, but the winners make very high gains.

  13. Check the credentials of trainers in spread betting. Do not overpay for any training course.

About the author

Andy Richardson

Andy began his trading journey over 24 years ago while in graduate school, sparked by a Christmas gift of investing money and a book. From his first stock purchase to exploring advanced instruments like spread betting and CFDs, he has always sought to expand his understanding of the markets. After facing challenges with day trading and high-pressure strategies, Andy discovered that his strengths lie in swing and position trading. By focusing on longer-term market movements, he found a sustainable and disciplined approach. Through his website, Andy shares his experiences and insights, guiding others in navigating the complexities of spread betting, CFDs, and trading with a balanced mindset.

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