Excerpt from: Understanding Spread Betting
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| August 16, 2007 | | How long shoud your spread betting contract be? | When placing spread bets, one of the things you usually need to decide is how long your spread betting contract will last. It is important to consider this, since a long term spread betting contract can tie up your funds, especially if the financial instrument used appears to be going against your prediction.
However, it can be a problem to overtrade as well. Especially for beginners, it can be a problem to be making trades too frequently. The key is to find a happy medium with the length of bet, considering your style, risk tolerance and temperment.
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