Spread betting is a great tool for investment if you are focused on the short term and is therefore ideal for those traders who are not serious investors nor they intend to wait for a long time for getting a suitable return on their capital.
Spread betting is also an ideal option for those who do not have a large enough capital for investment in stock market and yet they want to do it.
Spread betting is not something used only by non-serious investors.
In fact, a number of big players also use this type of investment for hedging their portfolio when the market is falling.
The increase in the number of spread betting companies coupled with the ease of access to trading platforms has led to a number of small investors try their hands in this type of trading.
People who have been observing the markets for a reasonable amount of time to take note of the volatility of the markets are offered with a sound environment for playing the market and make some quick profits.
This short term trading is not just for full time traders who have been dealing in the market for some time.
There are a number of new traders who are now trying their luck in margined trading in the hope of gaining through the correct prediction regarding the future direction of the market involving commodities, forex, shares and so on.
If you are getting into margined trading for the very first time, then it would be best to first contact a firm that can offer you with either or both of a deposit and/or credit account.
You need to be aware of the requirements for trading and minimum amount required.
This would be the minimum amount bookmakers will be willing to accept for taking new position.
This figure will vary across the markets.
Spread betting is for making various amounts of short term gains no matter what type of market you deal in.
The major incentive of getting involved in margined trading is that you are able to generate profit which is completely tax free since the government does not consider this type of trading to be an actual financial transaction as is the case with dealing in stocks and bonds in the physical market.
The only way to be a successful spread betting investor is by correctly predicting the market direction through reading market signals and not having greed.