Calculating Exposure and Closing Positions Q: How can I work out my exposure on a position? A: Your exposure is per point – so you are risking the value of your stake on each point in the price. Suppose the bid-offer...
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What is a Point/Pip/Tick?
What is a Point/Pip/Tick? Q. What is a Point/Pip/Tick? A: In spread betting you trade an amount ‘per point’ of movement of the share, commodity or index as the case might be. The Point, Pip or Tick are different...
Spread Betting Basics: Going Long, Going Short
Spread Betting Basics: Going Long, Going Short Q. What do the terms ‘Short Position’ and ‘Long Position’ mean? A: Traditionally, investors have bought stocks in the hope of profiting from a rise in...
Leverage and Gearing – the Double-Edged Sword
Leverage and Gearing – the Double-Edged Sword Q: What is Leverage? Leverage is naturally all about risk and on markets like foreign exchange and indices it is quite simple to calculate when spreadbetting -: Suppose you...
Spread Betting versus Share Dealing
Spread Betting versus Share Dealing Q: What is the difference between normal trading and spread betting? A: There are several differences and there are some unique advantages to spread betting which are not present in...
Why do Spread Bets have an Expiry Date?
Why do Spread Bets have an Expiry Date? Q: How long does your bet last? A: It’s one thing deciding whether a price will go up or down; but when you place a spread bet, you also need to specify a timeframe. There are...
But aren’t they just Bucket Shops?
But aren’t they just Bucket Shops? Q: A thing I’ve been seeing in reading reviews of spread betting brokers is the word bucket shops… From what I gather these were joints in the late 19th century where they...
Trading Spreads from the USA or other EU countries
Trading Spreads from the USA or other EU countries Q: Can you trade a spread betting account from other EU countries (as non UK resident)? A: You do not really have to live in the United Kingdom to spread bet, all you need...
Pros and Cons of using Spread Betting
Pros and Cons of using Spread Betting Q: What are the Pros and Cons of using spread betting to trade? A: As with any other trading instrument you have advantages and disadvantages -: Advantages of Spread Betting Tax free for...
Is Spread Betting OK for a Complete Novice?
Is Spread Betting OK for a Complete Novice? I found this site a few weeks ago, read it from start to finish, and it inspired me somewhat. I’ve since been lurking on the advfn pbb quite a bit, have read the daily commentary...