5 Tips for Traders New to Spread Betting
Trading the financial markets is a risky business at the best of times. When trading financial derivatives with a high level of gearing, the risk of losses is even higher. If you are considering financial spread betting as an alternative form of trading, you should read the following five tips first.
- Find the Best Broker for Your Trading
No matter how strong your best laid plans, choosing the wrong broker could damage your trading. You need to find a broker such as Core Spreads with a trading platform suited to your style, ring-fenced funds and tight spreads to keep your potential trading costs as low as possible. Without these basics you may impede your venture into the markets before you have even started.
- Know About Spread Betting Risks
Spread betting just isn’t the same as trading the traditional markets. The potential rewards involved are massive, but so are the risks. Before you start, remember that as a leveraged product spread betting can cause you to lose more than your initial deposit and therefore more than the amount you wanted to risk investing in the first place.
- Know Your Markets
Whilst different traders prefer different approaches, it is often wise to trade a range of instruments, and both long and short-term positions. As someone attracted to the stock markets, you probably have an awareness of a handful of markets. Try and harness this to your benefit and move on to less familiar markets once you have refined your trading plan.
- Find the Tools and Education You Need
Find the best tools out there to aid you in your day-to-day trading. The latest market news via live news feeds is a vital part of any would-be trader’s arsenal. You can also follow the best blogs on the internet to continually hone your strategies.
- Look Out For the Best Bonuses and Offers
The spread betting market is more and more competitive day by day. This means the brokers are desperate for your custom! Used in the right way, and always checking the small print, bonuses can be an efficient way of adding to your potential profits.
As new spread betting providers enter the market your custom becomes increasingly sought after. Look out for the best bonuses and offers out there. This normally means those with transparent terms and a straightforward way to claim your payout.
Risk warning: Spread betting and CFD trades are leveraged products. Losses may exceed deposits.
