Wednesday, March 25, 2009

Spread Betting?

Spread Betting
Spread betting is any of various types of wagering on the outcome of an event, where the pay-off is based on the accuracy of the wager, rather than a simple "win or lose" outcome, which is known as fixed-odds or money-line betting.

A spread is a range of outcomes, and the bet is whether the outcome will be above or below the spread. Spread betting has been a major growth market in the UK in recent years, with the number of gamblers heading towards one million.

Spread betting carries a high level of risk, with potential losses or gains far in excess of the original money wagered. In the UK, spread betting is regulated by the Financial Services Authority rather than the Gambling Commission.
Spread betting is a tax free cost effective alternative to traditional share trading. It allows you to speculate on the movement of stocks and shares without using a stockbroker, therefore you do not have to pay commission or fees. We make a spread around the live, underlying market price and you can bet on whether this market will rise or fall.

Betting on the movement of stocks and shares allows our customers the opportunity to generate substantial profits on both rising and falling markets. Spread betting therefore offers all the advantages of speculating on the stock markets and much more.
Article source: Wikipedia, the free encyclopedia.