A spread betting guide is an essential component for traders new to spread betting. This is because this type of investing is new and differs from traditional stock investing. A spread betting guide should have the basic information about spread betting, how it works, and the benefits.
A spread betting guide includes the benefits of spread betting. All profits from spread betting are exempt from capital gains tax, income tax, and no stamp duty tax. This is because spread betting doesn’t involve the purchase of a share which may be sold later and then subjected to capital gains. Instead spread betting involves the wagering on which way the market will move.
A spread betting guide explains the process of spread betting. In this type of investing, a firm quotes a spread on a market. The spread is the firm’s prediction of what the future price will be. A trader, who thinks the actual price will be higher, would place a buy bet. A sell bet would mean the trader predicts the market price to decline.
A spread betting guide is important for every new trader as it entails a great deal of pertinent information and a valuable spread betting guide would have many trading examples for investors to review.