How to Spread Bet?

If you want to begin making money spread betting, the first thing that a new trader needs to do is begin learning how spread betting works, how financial markets operate and, finally, how these can be traded. These three elements are fairly simple to research online and most decent trading websites have great introductory sections for new traders to learn all about financial markets. If we assume that a trader has completed the first two elements of learning how spread betting works and how financial markets operate thoroughly, then the next stage is where the excitement begins.

Make Sure You Understand the Risk First

Although the final stage (the actual spread betting in real-time markets) is the most fun it is also the most risky and the place where a promising spread betting career can quickly tumble and disappear. In order to remove this possibility, traders need to understand the concept of risk management and how to prevent losses. This should be learnt thoroughly when learning how spread betting works and importantly the realisation that it carries some risks as well as the possibility of large profits. With this in mind a trader can prepare themselves to learn how to spread bet.

Getting an Account

The first thing that a trader needs to do before learning how to spread bet is to set up an account. This is incredibly easy with accounts available online and registration for most of these only taking a few minutes and a small trading deposit required of usually less than £100. Many accounts also offer great introductory incentives to new traders such as cash back, education packages and low-stake trading for the first few weeks. It is certainly worth shopping around for the best deal to suit your spread betting needs. Once the account has been opened it is a case of getting to grips with the platform and learning how to simulate opening a trade and using the charting packages that the platform offers.

Placing a Trade

The next stage, before placing a single trade, is to devise a trading strategy. This is a set of rules based on the system that you are going to trade. Without this you will simply be blindly gambling and you will see your account depleted in a matter of trades. A solid strategy can be tested to show that it will make money before real money is used. Once this has been tested it can be traded strictly following the rules that you design. All successful spread betters put much of their trading success down to being able to follow their strategies strictly in every single trade.

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