Can I Spread Bet on Major Companies Stocks?

The reason why spread betting has become so popular in recent years is the ability for traders to place bets on a whole range of different markets using just one platform. These markets range from stocks, currencies, commodities, bonds and indices. Many spread betting brokers also provide multiple other special markets. Traditional stock traders have made a simple transition to spread betting, not only because it is a simple way to make money from share price movements, but also because it requires less capital to make money from these movements.

The World is Your Oyster

If you are looking to place bets on major companies stocks, this is possible on all trading platforms and with all major brokers. These typically range from the largest companies from the UK and US, with many spread betting platforms offering the possibility to place bets on large companies from other European and Asian stock markets. These markets are derivative markets, meaning that you will never actually own any of the stocks that you place bets on, they follow the actual price movements of the underlying asset and provide the same charting possibilities as regular stock investing.

Spread Bet With Limited Funds

One of the major advantages of trading stocks using spread betting is that it does not require a large amount of capital in order to make significant profits. Unlike traditional stock trading, spread bets are placed on a per point basis, meaning that a trader can place a stop loss of just a few points and invest very little in each bet. Traditional stock trading requires stock to be purchased at the actual share price; this requires a large investment in order to make rapid profits from expensive stocks such as Google. Betting per point allows even small movements in the value of a stock to be highly profitable whilst requiring a far lower investment.

Spread betting platforms use highly advanced charting software in order to analyse the potential for good trades. These charts use exactly the same analytical studies that professional stock traders use to spot investment opportunities. The benefits of spread trading major company stocks are enhanced by the fact that, in the UK, earnings on stock spread betting are tax-free. Earnings on traditional stock investing are taxable in the UK so the benefits on profits made through spread trading can be seen as instantly more attractive than conventional stock trading.

Tristan from http://www.spread.co.uk is interested in how spread bets can be made on the largest stocks with limited budgets, giving you the chance to make money when the big companies do.

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