Is It Smarter To Invest In Voting Or Non-Voting Stock Financial Spread Betting – Tell Me More

You are searching about Is It Smarter To Invest In Voting Or Non-Voting Stock, today we will share with you article about Is It Smarter To Invest In Voting Or Non-Voting Stock was compiled and edited by our team from many sources on the internet. Hope this article on the topic Is It Smarter To Invest In Voting Or Non-Voting Stock is useful to you.

Financial Spread Betting – Tell Me More

We’ve all heard of shares. But why do we keep hearing about Financial Spread Betting in the same context? Well, the truth is that financial spread betting is one of the fastest growing and most exciting ways of speculating on the movement of an underlying share or index. For many investors it has become a flexible and cost efficient alternative to trading ordinary shares. This article aims to set out the benefits of spread betting above and beyond the advantages of investing in shares. Read on for more details…

How does it work?

In very simple terms, instead of buying shares that you think are going to go up in value, or sell shares that you think are going to go down in value, you bet on whether they think they will go down or up. And it’s not like a football match where you are either right or wrong. No, with financial spread betting, you be an amount per point. So if you think RBS shares might go up, you might ‘buy’ at £10 per point. If RBS shares go up from 40p to 50p, you have made 10 points, which equates to £100. However, if they go down – say – to 35p, you have lost 5 points, which equates to £50. Simple, huh?

What are the advantages of Spread Betting?

o Stamp Duty is not payable (saving 0.5% compared to a normal share purchase)

o The ability to ‘hedge’ existing positions

o The fact that all bets will normally be undertaken in sterling, thereby removing the exchange rate risk from bets on overseas stock.

o Profits on spread betting are not subject to capital gains tax*.

o Direct commissions and fees are not payable; the spread betting firm makes it’s money from the spread.

o Whereas with ordinary share dealing accounts you can not profit from a fall in share price (selling ‘short’) with spread betting you can profit from falling or rising markets.

o Being leveraged products, they are traded on margin therefore bets can be placed with a relatively small initial outlay.

o A single account can give you Access to far greater range of financial markets.

o The ability to place very small bets, some companies let you place a trade of as low as 1p per point.

* (Tax Laws are subject to change)

And what are the disadvantages?

o Some markets may be very volatile and with leveraged products you could incur very large losses if your position moves against you.

o It may be less suited to the long term investor

o You have no investor rights, such as voting rights, dividends or corporate actions.

What can I trade?

Because you are not actually buying or selling the actual underlying instrument. the range of instruments that you ‘bet’ on can be far greater than simply underlying shares. In fact it is possible to bet on a number of underlying financial instruments:

o Stock market indices such as the FTSE or NASDAQ.

o Individual shares from the FTSE 100 and FTSE 250, but also from leading US and European shares.

o Currencies, FX.

o Commodities such as metals and oil.

o Interest Rates both short term and long term.

o Futures and options.

o Bonds.

In summary

Financial Spread Betting provides a cost effective and leveraged product to allow traders to take advantage of market movements, whilst at the same time allowing the trader to invest small amounts of money until they are confident in the product.

Video about Is It Smarter To Invest In Voting Or Non-Voting Stock

You can see more content about Is It Smarter To Invest In Voting Or Non-Voting Stock on our youtube channel: Click Here

Question about Is It Smarter To Invest In Voting Or Non-Voting Stock

If you have any questions about Is It Smarter To Invest In Voting Or Non-Voting Stock, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Is It Smarter To Invest In Voting Or Non-Voting Stock was compiled by me and my team from many sources. If you find the article Is It Smarter To Invest In Voting Or Non-Voting Stock helpful to you, please support the team Like or Share!

Rate Articles Is It Smarter To Invest In Voting Or Non-Voting Stock

Rate: 4-5 stars
Ratings: 5187
Views: 74244486

Search keywords Is It Smarter To Invest In Voting Or Non-Voting Stock

Is It Smarter To Invest In Voting Or Non-Voting Stock
way Is It Smarter To Invest In Voting Or Non-Voting Stock
tutorial Is It Smarter To Invest In Voting Or Non-Voting Stock
Is It Smarter To Invest In Voting Or Non-Voting Stock free
#Financial #Spread #Betting

Source: https://ezinearticles.com/?Financial-Spread-Betting—Tell-Me-More&id=2647170

Related Posts

default-image-feature

Is It Better To Invest In Stocks Or The S&P Index Trading

You are searching about Is It Better To Invest In Stocks Or The S&P, today we will share with you article about Is It Better To Invest…

default-image-feature

Is Buying Stocks At An All-Time High A Good Idea Use the Bias Indicator to Help You With Your Day Trading

You are searching about Is Buying Stocks At An All-Time High A Good Idea, today we will share with you article about Is Buying Stocks At An…

default-image-feature

Is A 10 Return In Stocks.In One.More A Good Return Gold Trading Is the Game in the Market With High Return on Investment

You are searching about Is A 10 Return In Stocks.In One.More A Good Return, today we will share with you article about Is A 10 Return In…

default-image-feature

Investors Coming Back To U.S Stocks This Month Are Going Should We Invest in Stock Market? Here is an Alternative to Stock Market Investing

You are searching about Investors Coming Back To U.S Stocks This Month Are Going, today we will share with you article about Investors Coming Back To U.S…

default-image-feature

Regime-Dependent Effect Of Crude Oil Price On Brics Stock Markets Overview of the United Arab Emirates (UAE)

You are searching about Regime-Dependent Effect Of Crude Oil Price On Brics Stock Markets, today we will share with you article about Regime-Dependent Effect Of Crude Oil…

default-image-feature

Process Of Managing Inventories To Minimize Holding And Stock-Out Costs Flipping Properties In A Drastically Down Market

You are searching about Process Of Managing Inventories To Minimize Holding And Stock-Out Costs, today we will share with you article about Process Of Managing Inventories To…