April 5, 2018 0

How Financial Betting Works

How Financial Betting Works

How Financial Betting Works

Punters who are no longer experiencing the satisfaction they once did from real money casino games, sports and horse race betting often wonder if there is another manner in which they can rollover their extra money. Sometimes, thanks to a run of successful wagers or game play, punters are asked to leave, or move on to another establishment, and so begin looking for another way in which to battle Lady Luck.

If a more stable system is required, something akin to the stock market, but better, financial spread betting is an avenue to consider.

Not an Ordinary Way to Gamble

Financial spread betting cannot technically be termed gambling, but is not stock share investment either, and this is thanks to a number of elements, the main one being that the outcome is not as random as betting on other markets, like soccer betting, may be. Other advantages include tax-free profits, being exempted from stamp duty, and not being charged commissions as one would if one were investing with a stock broker.

The Rise and Fall of Shares Don’t Matter

Financial spread betting works like other kinds of betting in that punters will be placing wagers on underlying instruments and their future movements in the market. Bets can be made on the stock to rise or fall, and, in the case of the former Buy bets will be made, while in the case of the latter, Sell wagers can be placed. This means that there really is no loss when things do not go the way it was thought they would: unlike share trading, punters will not lose their money should the stocks fail to do what they were expected to do.

Learning How to Place Financial Bets

When it comes to placing bids or offers, a company that offers spread betting services will offer you a quote with 2 prices for the underlying instrument you are interested in placing a bet on. One of these prices will be a Bid, or the price you will consider selling at, the other is an Offer, which is the price at which you will buy.

The movements of the underlying instruments are measured by a point system, with 1 point usually being equivalent to NZ$1, and punters are able to lay wagers for as large an amount as they wish to against every movement of these points. Punters are required to close their bets by placing an opposite bet on the instrument: closing a Buy bet means that he or she would need to sell at the current quote, and the Sell bet will need to be closed by buying at the current quote.

No Luck, Gut Feel or Intuition Required

When it comes to financial spread betting, there is very little room for wagering on an instrument on pure gut feel alone. Punters need to be knowledgeable about how the stock market works before they engage in this kind of betting, since the loss or profit of these wagers will be based on the differences between the opening and closing bets, multiplied by the value of the wagers laid per point.

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