Within the financial spread betting market, one will be utilizing margined trading also known as trading on margin; this is a deposit which the spread broker requires within in your trading account, and it is meant to cover any negative types of movement with the position which you have open. It is highly important that you create a good strategy before opening your positions and fully understand leverage and margined trading. Be sure to understand the underlying market with which you will be betting on. Leverage can be quite tricky as you are only speculating on what the market is going to do.
When one is trading on margin there will be a required percentage which the spread broker creates and it is based upon the volatility of the market. Financial spread betting makes use of either the Minimum Initial Margin Requirement (Min IMR) or perhaps the Notional Trading Requirement (NTR) which is a deposit of a certain percentage 마진거래 of your opening bet value multiplied by the margin rate. The margin rates range from 1% up to 20% on average.
With financial spread betting, one is using leverage and as o you can imagine there is potential to make large gains, however, there is also potential to lose a substantial amount if not diligent and setting up stop loss calls. A stop loss is essentially an order that you give to your broker which gives them a predetermined level of loss (or gain) that you wish to close your position. It is also to be noted that the stop loss does not always happen when you wish and you could lose more until the actual position gets closed, this occurs during market gapping. If you want to be a bit more cautious you can also (for a small fee) make use of guaranteed stop loss orders. This will guarantee that your stop loss order will be executed and the position will be closed at the loss level you have set. If you do not make use of a stop loss order you potentially could risk losing all of your capital.
This area of trading has become very popular in the United Kingdom. Investors are able to trade in numerous areas such as stocks and shares, commodities, bonds, indices, as well as interest rates and currencies. The use of margined trading and leverage allows the investor to opportunity to place their capital in many sectors of the market. Investors also do not have to pay a stamp duty nor a capital gains tax as financial spread betting is classified as a type of gambling.