I wanna to learn Forex and was advised to learn it in http://www.bullbearings.co.uk website. First term is Financial Spread Betting, can someone give me explanation with exapmles?
2006-06-09 01:52:51 · 4 answers · asked by Farik 1 in Business & Finance ➔ Investing
Spreadbetting is investing on indices and shares. Say you bet/invest £1/point on Ftse100 to go up (long position) and ftse100 did go up by 100 points. So you earn £100. The bigger you bet the bigger your returns and the bigger your losses should the market go against your prediction.
You only win if the market goes the way you predicted AND crosses the margin the broker has assigned for that particular index or stock.
Try googling and check the websites below. those guys sometimes give free seminars for a very clear explanation
http://cantorindex.co.uk/
http://www.capitalspreads.com/frontend/capital/publicnew/index.aspx
http://www.cityindex.co.uk/
http://www.deal4free.com/spreadbet/home.jsp
http://www.finspreads.com/
http://igindex.co.uk/content/index.html
http://igindex.co.uk/content/index.html
ciow
2006-06-16 07:49:02 · answer #1 · answered by starfield 2 · 0⤊ 0⤋
1
2016-06-09 17:29:48 · answer #2 · answered by Antonio 3 · 0⤊ 0⤋
A spread bet is alot like buying a shares. You r money can go up or down. I bet on cricket sometimes. The index will declare a value and you decide whether you want to buy under or over....example
batsman will score 25 runs.
now if i decide he's going to be only capable of several runs i would decide to buy under. if i put down a £100 stake i would get a return based on 25 - his score x £100. However if he goes on to score 100 i would lose money based on 100-25 X £100.
Well its a very basic description and i dont know the full ins and outs of it but Its a great way to loose alot of money, just remember you never,never see a skint bookie!
2006-06-09 02:03:33 · answer #3 · answered by Anonymous · 0⤊ 0⤋
betting that a spread will widen or fall. like an interest rate spread for example refers to the spread between the yield on a certain bond versus the yield on some selected govmt bond. So in this case, some 20 year corporate bond might yield 8% while a 20 yr govmt bond might yield 4.5%. the spread is 3.5%. there are instruments out there that allow you to profit (or lose) if you bet for example that in three months, the spread will move to 4% (which would mean that in three months, the corporate bond's yield would be 8.5% and the govmt bond's yield would still be 4.5%
2006-06-12 04:00:01 · answer #4 · answered by Oren H 1 · 0⤊ 0⤋
a good way to make or lose money
2006-06-17 14:18:42 · answer #5 · answered by Hannah's Grandpa 7 · 0⤊ 0⤋