If you are into investment business, then you must have come across the term spread betting. In ETX capital, spread bet is about taking the position based on the price of the product to rise and fall. The profit and loss are entirely based on the market move, you go through during betting.
Let us first check what actually is spread betting:
This betting process is tax efficient in the way of speculating on the movement of price of global financial products, including currency pairs, commodities and other investment process. In other words, it is a form of financial derivatives where you don’t buy or sell the asset but place the bet based on the price of the product.
What is Stake?
The investor needs to understand the exact meaning of the stake. Under spread betting, the trader buys or sells the amount per point of product movement under trading. Also known as “stake size” the every point of instrument moves, the trader will gain multiples.
What is Spread?
In simpler words, the difference between buy and sell price, is referred as Spread. You need to check the right ETX capital company that offers competitive spreads. One of the type of spread is, Tight Spread where the trader pay is less and part of cost of the trading is lower.
Margin or Leverage?
In one angle, spread betting is the financial leveraged product. Here you need to deposit small percentage of full value of spread bet. In leveraged trading, the trader can magnify the returns along with losses.
Benefits of Spread Betting through ETX Capital:
Prime Leverage Rates
Different platforms offered
Traders who spread bet get enough benefit by doing the process:
If the price of the product falls, you can sell the same
All profits are tax-free
No separate commission to pay
No payment for stamp-duty
Trader can trade in global market
Why to spread bet with ETX Capital?
One can choose through spread betting including- Indices, Currencies and Commodities
Different trading platforms- ETX TradePro, ETX MT4 and ETX Binary
High quality customer service is offered to solve difficulties on trading for product
Things you must consider:
Before trading or spread betting through ETX Capital, you need to read some reviews which are necessary for better result. You can check out online sites or official ETX site to understand trading. Consulting with expert trader will also help you to understand the capital market. A good knowledge about the spread betting will certainly help in getting the best result.