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Spread betting is a method of trading that has a high potential for both loss and gain. The nature of spread betting is highly speculative. Through it, traders can potentially make money when the market is going up or down, depending on the bet that they place.
Traders only make money when they correctly predict the direction the market is going in. If a trader feels that the market will be going down, then he or she would bet against the market. If the trader feels that the market will be going up, then he or she would bet with the direction of the market. Gains in income come from the spreads – the difference in price between the bet and the direction the market takes.
Traders place their bets in terms of points. Each point has a set monetary value assigned to it. The money that the trader makes depends on how many points that the trader loses or gains. Traders can place stop orders to protect themselves. A stop order is a simple computer command that tells the trading system to cancel the transaction when there is a certain gain or loss in the market. This is how traders protect themselves from potentially wild market swings – executing a stop order saves the trader.
Gains from spread betting are tax-free in the UK and can be done through many online sites. It can be an especially lucrative form of investment for UK traders.
The risks of spread betting are often too large for many who don’t have much of an appetite for risk. The most frustrating part of this business is being unable to predict the market. You can potentially stay in a position where you are losing a lot of money if you aren’t careful. This is tempting when you are convinced that there are gains to be realized from the position you are trading in. If you find that this is the case, then you should evaluate why you bought the position in the first place. A penny saved is a penny earned, and this is certainly true in the investment world.
The best way to begin is by visiting website operated by Cantor Index and setting up a
spread betting demo account until you get better at timing the market. You won’t be tempted to make silly mistakes that many other traders make and having a demo account will give you the confidence to trade with real money.
While risky, with time and practice you will get better at spread betting. Once you learn how to time the market, and you gain practice, your luck with trading will be better. This is one of the best ways to mitigate the risks involved – getting better at the game. You will lose money in the market, but the objective of being a trader is to make more than you lose.

This is a sponsored guest post provided by Chris, working in partnership with Cantor Index.

Finance is made out to be difficult, but it’s really not.   All financial advice really boils down to 2 sentences: “Spend less than you earn.  Save or invest the rest.”  Everything else is an unnecessary complication, unless you need to be told that commemorative plates aren’t actually an investment.   Unfortunately, we’re all people. (Except for you in the back.  I see you, and you are not people.)  People make mistakes.  People sometimes need things spelled out, or at least explained in a way that makes it seem less intimidating to get started.

With that in mind, here are four steps that will get you out of debt and, over a long enough timeline, make you rich:

1.  Lower your interest rates.  If you’ve got debt, particularly credit card debt, you’re paying too much interest.  It doesn’t matter what the interest rate is, it could be better.    It’s time to pick up the phone and politely ask your credit card company to lower your interest rate.  If they refuse, mention that their competitor is offering you 3% interest on a balance transfer with no transfer fee.    Mention a competitor by name, but don’t worry about a specific offer.   There are always offers being tossed about.

If they won’t lower your rate, find a company who will.   5% on a 10,000 balance is $500 per year.   That’s 3 months of payments for free.

2.  Lower your monthly payments.   Do you have a cable bill? A phone bill?  Any other bills?  Put them in a stack and call them.   Every. Single. One.  Ask if there is any way you can lower your bill.   Can you get put on a new customer promotion?   My electric company offers a saver switch for my air conditioner that will lower my bill by 15% just for giving them the ability to toggle my AC on and off.    When we had that installed, I never noticed it in use.

3.  Save $1000.   When you’ve got no money, every unexpected expense is an emergency.  When you’ve got a little bit socked away, you can ride out the problems without much worry.   $1000 may not be enough to ride out an extended bout of unemployment, but it does a pretty good job of taking the sting out of car repairs.   Do whatever you have to do, but get some money in an emergency fund.  Then, don’t touch it!

4.   Categorize wants and needs.  I want a vacation.  My kid needs braces.  I want a big screen TV.  My gas bill needs to get paid.  I want a new car.   My family needs food.  Are you sensing a theme?  Pay attention to what you spend.  Ask yourself if it’s something you need, or just something you really, really want.   Just the act of categorizing it can make it easier to avoid buying whatever it is.

5.  Use the savings from 1-4 to pay off whatever you owe.  Don’t blow your new-found savings on spinner rims or soap made from rich-people tallow.    Use it to finally get ahead of the game.