About 6 years ago I started to notice that certain friends of
mine had quit their jobs but continued to live very luxurious
lifestyles - seemingly without doing very much. I thought
they must just be using up their savings until I discovered
they were all making a fantastic living by spending just a
few hours a week doing something I had never heard of before
- “financial spread betting”
More and more people are now becoming familiar with the
phrase “financial spread betting”. Once, the sole preserve
of City Whiz kids or sophisticated gamblers, financial
spread betting is now gaining in popularity as a great way
to earn a very sizeable tax-free income without the risk
of losing the shirt off your back!
So why is financial spread betting becoming so popular.
Well, with a bit of understanding and practice, ordinary
people, with no prior experience, can earn enormous sums
whilst controlling their risks and limiting their losses.
You do not even need a stockbroker or a city dealing account
to do get involved. An on-line account is very simple to open
and anyone with web access can do it.
Spread betting, aka futures trading, is easy to understand
if you stick to a simple index like the FTSE 100 or the DOW
JONES.
In basic terms, this is how it works:
When you buy a ‘future’ you take a position on what you
think the index (e.g. the FTSE 100, or the DOW ) will be
at some future date - e.g. June 2005. Let’s say the FTSE is
currently at 5200 and you think it will rise over the next
three months as 'terrorist fever' abates. You would buy the
June FTSE at (say) £10 per point. For every point it rises,
you make £10. If it goes up 100 points, you make £1000.
Of course, if you get it wrong and the index falls by fifty
points (say), you lose £500.00.
You need of course to be very aware of the risks before you
get involved. As with any investment or business, you can lose
money. If, by nature, you are a timid, cautious person, then
it is definitely not for you. But if you have some money to
play with, and aren’t risk adverse, then financial spread
betting is the one of the best possible ways you can make
a great deal of money completely tax free… and there are
clever ways of limiting your losses so you never lose more
than you can afford.
Unlike most businesses, it is possible to get involved with
an absolute minimal outlay and take a position without buying
a single thing. You do have to ‘back’ your position with a
certain amount of cash, but this is ‘insurance’ money, NOT
stake money.
The best thing is you can try it for free without any risk
at all. You can ‘dry trade’ with ‘monopoly’ money until you
get a feel for how it works and are confident enough to start
using real money.
Financial spread betting has become so popular primarily
because of the relationship between risk and capital. It is
highly leveraged and you can make huge profits with only a
limited amount of capital and risk. The fact that there is
(unlike with most investments) no stamp duty or tax also
helps make it extremely attractive.
So if you are of the right temperament, spread betting can
be a very lucrative way of making an amazing income in your
spare time. But be warned, if used recklessly or without
the correct knowledge it can result in large losses.
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