How Spread Betting Works
spread betting depends on how the stock behaves during the trading day. This is why one needs to be informed on the stocks performance in order to determine on whether the stock will go up or take a downward trend. The betting companies would normally peg their range on the actual stock price. This means the gains and losses percent depends on the amount one bets per each cent of the price. The unidirectional bet makes it possible for a gambler to bet on either direction.
One should also determine the factors that would determine the rate at which the stock might take in the speculated direction. This means that the overall profits and loses made depends on how many points the stock made towards the direction one speculated upon. One can make the bet each trading day depending on how the stock behaves or can lock the bet to apply every trading day. This attracts a fee of a certain percentage. The fee is normally lower than ten percent. It would be wise for one to have an account which would compensate for the loses made when the stock trades against one’s bet. Financing spread betting attracts no tax and hence it is much profitable than real stock trading.