To make money you need a proper financial spread betting guide to help you understand how  the system works and how to exploit this knowledge to your advantage. Many people think making money on the stock market is hard but it doesn’t have to be.

In this financial spread betting guide it is easier to show you by example just how you can make money from the stock market, trading in currencies or in commodities. For this example we will use the UK FTSE 100 with how it might react on a hypothetical day.

On a given day you can go on the web or place a call to a spread betting firm to find the “spread” on the FTSE 1000. Now say the information shows that the spread is 6350-6500 (6500 to place a “buy” or “up” bet and 6350 for a “sell” or “down” bet).

Financial Spread Betting Guide Male Money Even If The Market Falls

Now using your judgment you have decide whether the FTSE will go up or down. If you believe that the FTSE 100 will go up you will place an “up” bet. You bet a certain amount per point. For example you can bet $10 per point. If the FTSE 100 rose to 6700 within the period specified by the betting firm (usually one trading day) this would be a raise of 200 points. In this example you would earn $10 x 200 points, which means you would net a profit of $2,000.

On the other hand if you feel the market was going to fall then you would place a “down” bet. If we use the same example of $10 per points and the FTSE 100 was to fall to 6200. This would be a fall of 150 points and your profit would be $10 x 150 point which leads to a net profit of $1,500. The thing is if you were to place this bet and the FTSE 100 were to rise by 150 points then you would lose $1,500.

As you can see from our financial spread betting guide the theory is quite simple and placing bets on the way the markets might turn is infinitely a lot easier than trying to pick out one stock that might make you money. In this way you can also make money even if the markets fall.

Many people are now turning to financial spread betting rather than selling short or investing in hedge funds as the profits are more immediate and the potential profits could be large indeed.

Financial spread betting works using the financial markets such as the UK FTSE 100 and how it will react in a given day. It is easier to explain financial spread betting by example.

On any given day you can find out on the web or by placing a call to a spread betting firm to find the “spread” on the FTSE 100. They will give a spread such 6350-6500 (6500 to place a “buy” or “up” bet and 6350 for a “sell” or “down” bet).

If you believe that the FTSE 100 will rise, you then place an “up” bet. You would bet a certain amount per point. For example you could bet £10 sterling per point. If the FTSE 100 rose to 6700 within the period specified by the betting firm (usually one trading day) this would be a raise of 200 points. This would mean that you would earn £10 x 200 points which would mean a net profit of £2,000 sterling.

If you were to feel that the market was going to fall then you would place a “down” bet. If we use the same example of £10 per point if the FTSE were to fall to 6200 which would be a fall of 150 points your profit would be £10 x 150 points which equates to a £1,500 sterling net profit. If the FTSE 100 were to rise however to 6500 you would lose £1,500 pounds.

Financial spread betting offers an easy way for individuals to bet on the movement of the market. Financial spread betting now opens the way for individual people to use the market other than through selling short in or investing in a hedge fund.  It is more immediate and the potential profits are huge.

The winnings and losses will be taken from this account. The investor can also have a “debit” account where you give you credit card details. The spread betting firm will then agree with you a maximum loss figure which will be taken out up front and winnings then credited to the investor. Accounts can be closed at anytime.

Interest will be paid on all monies held in any account with the account holder being sent regular statements (usually daily) so that the industry is able to meet the requirements of the FSA. The spread betting industry is fully regulated and supervised and all clients’ accounts are segregated from those of the firm with which you are undertaking transactions.

There are a range of financial markets that you can bet on from shares, currency through to property. It is a fast growing industry and can be done from the comfort of your own home.

Financial spread betting is an easy way for a beginners to start to play the stock or Forex market as you are betting on the markets themselves rather than each individual stock or currency. Here a some top tips to help you be successful at financial spread betting.

1. Practice makes perfect

If you are a novice then the world of financial spread betting is full of dangers. I would suggest opening up a “demo” account. There are plenty of companies that will allow you to do this. They usually give you up to £10,000 to play trade with. Get comfortable and then go to real money.

2. When opening up a real account

Companies will let you set up for as little as £200. I would suggest setting up your first account with a minimum of £1,000. This will allow you to absorb more losses than with £200 or £500, keep your betting size to small fraction. I suggest that 2% is an ideal maximum risk but with a small account 5% is generally figure used.

3. Start Slow

The UK FTSE 100 is a good place to begin. The blue chip stocks are even better as they are more liquid. The US stock market and Forex (Foreign Exchange) is generally too volatile for a beginner.

4. Increasing your profits

The best time to bet is when you believe the market is going to move sharply either up or down. This is done only by studying the market and noticing trends and practicing also helps. There is software to buy that can help you predict the market.

5. Never Average Down

This means simply never increase you position when the market moves against you. Although if you are up then increasing you position can be advisable; a  good example would be when you open at £1 a point on the FTSE at 6000, stop loss at 5900. The market moves to 6100. That means a profit of £100. In this example you buy another 50p and moving your stop to 6000.

Should the market move against you, you will break even on the £1 point per trade but be £50 up on the 50p per point trade. (If doesn’t seem to make sense just read again slowly and it will become clearer).

6. Daily Bets

If you decide to bet daily make sure that you have access to the all information constantly. For the beginner it is easy to spot general trends that take place over days rather than hours. Daily betting can lead to small losses accumulating into large sums. The desire to cover you losses becomes greater.

7. When Betting A Word Of Advice

To make sure that you are covered always use firms that give firm quotes on the screen. Use proper regulated firms. There are unscrupulous people out there who will not think twice about taking your money.

8. Telephone Betting

If you close a deal by phone then state your requirements firmly and accurately (ask them to repeat back to make sure). Check you contract note carefully and never ever expect advice as it is against the law.

9. Minimizing Your Losses

When placing your bet always use a stop loss (maybe even a guaranteed stop loss) and perhaps a limit order. This will then protect you if the market suddenly turns against you.

10. Profits

In the first six months don’t expect to make a profit. You will be refining your technique in the real world environment. Please be strict with yourself and bank even small profits rather than betting them again for bigger gain. It will take a long time before you know technical analysis very well. The first six months will also be about finding out about yourself and if you can deal with losing money. If you can’t handle the fear of losing money then step away.

Financial betting can be confusing and scary. If you feel overwhelmed then just sit back watch the markets and wait until you feel safe to stick your toe back in the water. When you start to master the intricacies of financial spread betting then it can be a rewarding and even fun experience.

Financial spread betting works using the financial markets such as the UK FTSE 100 and how it will react in a given day. It is easier to explain financial spread betting by example.

On any given day you can find out on the web or by placing a call to a spread betting firm to find the “spread” on the FTSE 100. They will give a spread such 6350-6500 (6500 to place a “buy” or “up” bet and 6350 for a “sell” or “down” bet).

If you believe that the FTSE 100 will rise, you then place an “up” bet. You would bet a certain amount per point. For example you could bet £10 sterling per point. If the FTSE 100 rose to 6700 within the period specified by the betting firm (usually one trading day) this would be a raise of 200 points. This would mean that you would earn £10 x 200 points which would mean a net profit of £2,000 sterling.

If you were to feel that the market was going to fall then you would place a “down” bet. If we use the same example of £10 per point if the FTSE were to fall to 6200 which would be a fall of 150 points your profit would be £10 x 150 points which equates to a £1,500 sterling net profit. If the FTSE 100 were to rise however to 6500 you would lose £1,500 pounds.

Financial spread betting offers an easy way for individuals to bet on the movement of the market. Financial spread betting now opens the way for individual people to use the market other than through selling short in or investing in a hedge fund.  It is more immediate and the potential profits are huge.