Anytime that you make a trade in the market, you need to know what you’re up against. Knowing the following seven points will not only help you in your spread betting, but it will also put you in the right frame of mind in...
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Dealing Service, Discretionary Service, and Portfolio Advisory Service
Before you can take any active part in the stock market you will need the services of a stockbroker. Nowadays the best way is to sign up to one of the on-line dealing services. If you are old fashioned and know someone who is...
Choosing and Using a Stockbroker
Stockbrokers used to be intimidating people in pinstripe suits. But that has all changed: today’s stockbroking is available in a wide variety of forms for a variety of different prices. But what is the difference between a...
Tips for Selecting an Online Broker
There’s more to evaluate than who’s offering the lowest commission for online stock trades. Many online brokerage sites promote loss leaders by offering free or nearly free trades, but the bargain is for a type of...
Initial and Variation Margins
Q. What is Margin? A: Spread bets are geared products that magnify the returns on share price movements but can also result in the loss of big amounts of money if the price goes again you. Thus, a spread betting provider...
What is a Point, Pip, or Tick? Spread Betting Terms Explained!
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 measures denoting the unit...
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 the price. The view that the price will rise, and...
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 buy the FTSE at £5 a point at 4,500 with a stop loss...
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 traditional share trading. Spread betting...
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 two types of spread bets: bets that close...