Basics of Spread Betting

When it comes to placing spread bets, it is important to understand some of the basics. Spread betting has a few basics that are good to remember. They will help you keep on track, and earn more money.

• You don't own anything. You are placing spread bets only. You are not actually buying are trading anything (this is why you can short).
• No commissions for the indexation company. Once you overcome the bid-ask spread (where the company makes its money) it's pure profit for you.
• Start with markets you know and understand. Get the hang of placing spread bets by starting with a familiar market.
• Free practice available with a demo account from GFT Global Markets.
• Remember that markets are volatile, and that can affect your spread betting.