This is a guest post by James
In the current financial world there are many difficult choices to make with our money. With savings accounts offering extremely poor returns for our money, people are being forced to find other opportunities and risking their money in different locations to get a significant return on their own savings. There are various investments that can be made, from stocks and shares to bonds and ISAs, but another opportunity could be spread betting.
Spread betting is a dangerous game, and this has to be taken into account before you decide to commit to this kind of investment. As with all bets, you are hoping for a certain result in the market and you are betting on the change in value of certain stock. This means that the risk is large as you are quite simply betting on the outcomes of the stock market, and with that risk it does not make the spread bet too dissimilar to going down to your local bookies and investing in the horse racing. The difference with spread betting is that your betting on stocks and shares, and this makes your investment quicker, cheaper and more profitable than actually going out and buying some shares in the highly ranked companies around the world.
Spread betting gives you the chance to learn the stock market without actually investing in shares, so you can start investing in changes from as little as £1 or whichever currency you deal with per point. This means that your investment in a top 10 company works out far cheaper than someone who has genuine shares in that company. If the price of the shares change then you will see the results, whether than be negative or positive in your favour. This means that it is definitely possible to make money with spread bets, and there is no doubt that you can see the results far sooner than if you invested in the physical stock. This means that you can continue to invest and make money far quicker, and whilst the risk is far more than your normal savings accounts, all spread betting firms will allow you to manage your losses with control over how far your investments can fall before you back out.
If you manage to invest in improving stock, then of course you will make money. It is exactly the same premise as investing in any kind of stocks and shares; you invest with the idea that you will receive a positive return. To make money you need to ensure that you do your research on stocks, it’s better to invest in a safe bet rather than a risk! If you pick the right stocks and shares to spread bet on then there is no doubt that you will end up making money, the risk may be there, but to make large amounts of money on our investments we need to take a risk every now and again. Spread betting is definitely a risk, but when it pays off you can see far greater returns on your investments than any savings account would offer.
About the author: This article is written by James who has a keen interest in making money. He sees spread betting as a real alternative to investing in stocks and shares, and is trying to learn all about the processes involved.
From Editor: This article is all about a topic that I don’t have much knowledge about. Reader solely responsible for making any action as per this article.
Like to Add Your Guest Post here?
This post was written by a guest writer mentioned above. If you’d like to add a guest post in Money Hacker, please check out Write for Us page for details about how YOU can share your knowledge with our community.