| Today, financial investors and traders are equally | | | | money-line) betting or pari-mutuel betting. A spread is |
| interested in Spread Betting and Share Trading. Both | | | | a range of outcomes, and the bet is whether the |
| of them are popular as both of them provide good | | | | outcome will be above or below the spread. Spread |
| leverage and gearing to the individuals involved in | | | | betting has been a major growth market in recent |
| such markets. Both of them carry risk in order to | | | | years, with the number of gamblers heading towards |
| earn profits and in both the cases individuals can | | | | one million. Spread betting carries a high level of risk, |
| manage risk with proper knowledge, planning and | | | | with potential losses or gains far in excess of the |
| strategies. Obviously, risk has to be there as there is | | | | original money wagered. |
| profit. Everything which gives you profit involves risk. | | | | Trading shares is similar to trading antiques. Your aim |
| This is one of the simplest rules of any business. So, | | | | is to "buy low" and "sell high". Some trading strategies |
| for sure, in case you are planning to venture out in | | | | - momentum strategies - have refined this concept |
| these markets, be prepared to face risks else this is | | | | to "buy high" and "sell even higher". Many beginners |
| not the place for you. | | | | think they can trade shares on the basis of gut feel. |
| If someone asks a trader to choose between CFD | | | | Every day their money arrives in the markets and is |
| and Share Trading then how is that supposed to be | | | | welcomed greedily by experienced traders whose |
| done? On what factors can one make a choice? Well, | | | | sole objective is to make that money their own. |
| these questions seem easy but then they are not | | | | Gut-feel traders don't last long in the markets. They |
| easy to be answered. There few differences | | | | usually suffer major losses and stop trading, having |
| between the two of them and by understanding | | | | fattened the wallets of experienced traders. If you |
| these differences, one can make a decision as to | | | | want to trade successfully, you need a strategy that |
| what needs to be chosen as per individual needs and | | | | gives you clear buy and sell signals. You need to trust |
| requirements. | | | | your strategy sufficiently to act on its signals without |
| Spread betting is any of various type of wagering on | | | | hesitation. The way to build trust in your trading |
| the outcome of an event, where the pay-off is | | | | strategy is to test it on paper before committing any |
| based on the accuracy of the wager, rather than a | | | | real money. |
| simple "win or lose" outcome, such as fixed-odds (or | | | | |