Excerpt from: Understanding Spread Betting
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| November 16, 2007 | | Beginning spread bettors should engage in taking profits | One of the advantages of spread betting is that there are no commissions for the indexation company. They make their money on the bid-ask spread, so if you overcome this spread, you get the profit.
When beginning as spread bettors, it is a good idea to engage in taking profits. This means that when you overcome that bid-ask spread, and you are poised to make a profit, it is a good idea to get out.
More advanced spread bettors run their profits, maintaining the position in order to continue to capitalize if they are right. But this can be a risky decision for the beginner.
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