Bank finance articles and tips

Spread betting is an easy and cost-effective way to trade financial markets. It enables the traders to profit from both rising and falling prices. It is more often viewed as an alternative to traditional trading as it allows gaining exposure to a financial instrument without actually having to own it. To put it simply, it is a bet, in which every point movement in the price multiplied by the size of the stake bet results in either profit or loss. The outcome depends on how correct your predictions are.

The concept is pretty straight forward - you would go long, meaning you would buy a particular instrument, if you think that the trading environment is pointing to rising markets. Conversely, you would go short, i.e. sell, if you think that it is going to fall. If your prediction is correct, you make profits. However, if it is wrong, then you lose.