Excerpt from: Understanding Spread Betting
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| October 24, 2007 | | Placing spread bets on volatile markets | One of the things to remember is that spread betting carries risk. While there is a chance to make a great deal of money, the possibility to lose is present as well. And the main reason is that spread betting takes place on volatile markets.
The U.S. stock market was gaining for two days, and now it is dropping. Currencies that are losing in the morning may be gaining by the afternoon. It is important to remember, when placing spread bets, that volatile markets play a large role in the outcome.
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