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Financial spread betting allows you to bet on the performance of shares without owning the underlying investment. The amount you win or lose will depend on how much you stake and the value of stock movement. The primary advantage here is that the income from financial spread betting is tax free. Thus, you need not pay any capital gain tax, income tax or stamp duty on any profit you make here. However, financial spread betting carries a high level of risk. While there are people who have made a lot of money from spread betting, there are also others who have lost their money on spread betting. Thus, before you embark on this system, make sure you have a fair understanding of what you are getting into and the risks involved. Keep your feet planted firmly on the ground; do not bet more than you can afford to lose. For all your strategies and analysis, the truth is that you can never eliminate entirely your probability to lose. For this purpose, many companies offer stop-loss option. This sets a limit on how much money one can lose and of course, also on the amount one can gain. |
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Latest page update: made by nancy_jones123
, Jun 22 2010, 8:54 AM EDT
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