Can you make money spread betting?

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This is one of the most often asked questions for new traders and the simple answer is yes of course you can.  Spread betting provides access to an unprecedented range of markets.  The simple fact of the matter is that markets do one of two things.  They either go up, or they go down.  It is the rate at which they do so and whether you pick the right direction that determines if you make money.

We’ve put together a handy series of guides that should help new and experienced traders navigate the markets through spread betting.

Before you start reading the guides you should be aware that spread betting is not like placing a normal bet where you losses are capped at the initial stake.  You are betting a certain amount per point move of an asset.  If the asset is priced at 100 it means that if it goes to 0 and you have bet £1 per point you can lose £100.  So for a £1 bet your potential downside is 100x your stake.  On the plus side, if the price goes to 500 you make £400 which is a monster return for a £1 bet.  If you don’t know how spread betting works you can read our article on the basics of how spread betting works here.

One of the most important factors in spread betting is choosing a broker you are comfortable with.  There are many factors involved in choosing the right broker, including; liquidity, financial stability, range of markets, spread width and educational and research tools.  Read our guide to choosing the right spread betting broker before you open an account.

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