Why Spread Betting is Gaining Popularity

A financial boom began in the early 2000s and continued through 2006. Prices everywhere increased from the housing market to prices on the stock exchanges. These increases were not isolated to one geographical region, but were felt worldwide. Suddenly, the economy began a sharp decline. Prices dropped steadily and quickly and the effects were visible on all stock market exchanges.

Spread betting became increasingly popular during this time because this type of financial investing is not dependent on a strong economy. Investors spread betting have the opportunity to make profits on stocks which are declining in price. This is possible because in spread betting an investor is not purchasing shares of a company, but is speculating on which way the price will move.

Spread betting involves an investor making a wager on whether the price of a stock will increase or decrease. Just as day traders watch market prices, an investor in spread betting will monitor prices as well. When one sees prices decline, a wager is placed on that stock indicating the price will continue to decline. If the investor is correct, a profit is made. Spread betting makes money even during weak economic times which is why its popularity has increased.

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