In the financial arena, betting exchanges haven't as yet taken off, but I predict they will do one day; fixed odds betting is firmly established, in two forms: binary betting; and the innovative range of products offered by firms such as betonmarkets. We do look briefly at betting exchanges, and the two forms of fixed odds betting, but the primary focus of this book is standard financial spread betting. Spread betting is growing rapidly. One recent estimate put the number of customers at between a quarter and half a million, with expected growth to in excess of one million over the next 5 years.
You can peer at the Summit of the Spread Betting Mountain in the distance and dream of riches, but if you spread bet without knowing what you are doing you will be like a climber setting off to climb a mountain with no preparation, no protective clothing, no equipment and no guide. If we want to climb the mountain called Spread Betting, our first task is to reach Base Camp.
Getting to Base Camp means we will have the requisite background knowledge and resources to start spread betting. More specifically, we will know how to select a spread betting firm; we will have identified the resources we need by way of hardware, software, price data, information and websites.
We will have formed a view on what underlying instruments we wish to bet on, and have an understanding of the various spread betting products on the market. We will have respect. Open navigation menu. Close suggestions Search Search. Skip carousel.
Carousel Previous. Carousel Next. What is Scribd? Find your next favorite book Become a member today and read free for 30 days Start your free 30 days. Create a List. Download to App. Ratings: Rating: 4. Length: pages 3 hours. Description Financial spread betting is a huge industry.
But who wins and who loses at this game? What do the winners do that differs from the losers? That is what this book is about. Malcolm Pryor uses the model of climbing a mountain to explain a disciplined, winning approach to spread betting. First a base camp must be established. This includes getting set up with the right corporate data, charting and accounts software, deciding what to bet on and what your time frame should be, learning the nuances of operating an account, controlling risk, and learning from other people's mistakes.
Many spread bettors don't even get this far. Next, we start climbing the mountain; this means having strategies that are right for us. The whole of this section is devoted to illustrating strategies which can be used for spread betting, for example trend following, counter-trend strategies and delta-neutral strategies such as pairs trading.
Finally, we make our assault on the summit of the mountain. This is where the winners set themselves apart from the losers. Issues covered here include trade planning, record keeping, performance reviews, more on risk management, psychology and continual development. In this enhanced second edition, you also benefit from: - Refreshed and improved trading and risk management techniques, incorporating four additional years of spread betting experience and changes in the markets.
Spread betting is great fun; almost anyone can enjoy the odd bet now and again. But if you want to make money from spread betting then it must be taken seriously and a disciplined, tactical approach is required.
This book is the essential guide to get to the top of the mountain. Personal Finance. Home Books Personal Finance. About the author. He is a director of a consultancy practice, and is an expert at several games, including bridge where he has held the rank of Grandmaster for over a decade. Related authors. Related Categories. Second edition published This eBook edition Designated trademarks and brands are the property of their respective owners.
For Karen Preface to the Edition Major changes in the spread betting arena It is four years since the first edition of this book was published and there have been some major changes in the spread betting arena. Here are some of them: The number of firms offering spread betting services has increased significantly to well over 50, partly due to the proliferation of white label services where an established firm licenses its technology to another firm which then repackages the services under their own brand name.
Some unacceptable practices, such as the infamous requoting of prices, have been discontinued. Key changes in the Edition There are quite a few changes in this second edition, partly due to the changes in the spread betting world discussed above, and partly due to new developments in my own trading. Changes in Part One Sections on computer hardware updated to reflect recent developments in technology Sections on price data updated to reflect improvements in the quality of data supplied by the spread betting firms www.
The song remains the same Spread betting continues to attract new entrants both in terms of new firms supplying spread betting services and new customers. What this book covers This is a book about financial spread betting. What do successful spread bettors do that is different? This book has been written to try to answer that question. Who this book is for This book is not for: complete beginners, it assumes a basic understanding of how spread betting works; people who think there is easy money out there, just waiting to be picked up; those who want to spread bet for the adrenalin rush, irrespective of the results.
How this book is structured Imagine a mountain called Spread Betting. Our mission is to climb it. There are three key stages to climbing a mountain: first a Base Camp must be established; from there the journey up the mountain face begins; and finally one makes an attempt on the summit. Part 1 In the first Part of the book, we set off to reach Base Camp.
We are now ready to climb the face of the mountain called Spread Betting. Part 2 In Part 2, we start to climb the mountain. We are now ready to make our assault on the summit. Part 3 In Part 3, we set off on the route to the summit. Supporting websites www. Acknowledgements I have many people to thank for providing support, advice and encouragement to me while writing this book and I shall not be able to name them all personally; I really appreciate it, thanks.
I would like to thank Dr. Van K Tharp, mentor and friend. And most of all I would like to thank Karen, to whom this book is dedicated. Risk Warning No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading material in this book can be accepted by the Publisher or by the Author. Its attractions include: Spread betting is very straightforward The mechanics of entering or exiting bets are straightforward.
Open to everyone You can open a spread betting account with just a few hundred pounds. Credit available Spread betting firms do sometimes offer credit facilities. Exposure to a wide range of markets You can bet on commodities, interest rates, bonds, stocks, indices and currencies — all of which can be traded from the one account. Ability to go short You can bet on stocks falling in price.
Low transaction costs No stamp duty and no commissions! Remove currency exposure With most firms you can bet on, say, a US stock in pounds per point rather than dollars per point. Sophisticated trading platforms Most spread betting firms have invested heavily in their trading platforms, which offer sophisticated risk and account management tools, charting, analysis and news as part of the service. Leverage Spread betting can offer extreme leverage. Overlap and convergence of betting products Recent developments in sports betting are now starting to spill over into the financial spread betting world.
In sports betting there are three ways to bet: fixed odds betting e. One million spread bettors Spread betting is growing rapidly. Climbing the spread betting mountain You can peer at the Summit of the Spread Betting Mountain in the distance and dream of riches, but if you spread bet without knowing what you are doing you will be like a climber setting off to climb a mountain with no preparation, no protective clothing, no equipment and no guide.
Start your free trial. Page 1 of 1. Become a fan on Facebook Follow us on Twitter. The late Benjamin Franklin is remembered for once famously saying, "There are two things you can be sure of in life - death and taxes! Financial Spread Betting falls nicely into this category. Subscribe Here is why: I am tired of self-proclaimed gurus charging hundreds of pounds to teach how to trade.
Trading is Risky. Financial spread betting is leveraged trading. It provides traders and investors the opportunity to trade the financial markets without ever taking ownership of the underlying asset. Spread bets are geared trades which give you greater buying power and the potential for greater returns. It leverages the value of your money regardless of the financial market that you are interested in, whether shares, commodities, indices, or even currencies, and its flexibility allows you access to all these markets from just one account.
Spread trading is a form of derivative trading which means you don't actually own any of the shares that you are trading but are simply trading on the direction of the share price i. What is Spread Trading? So what is a Spread Bet? What is Spread Betting? Reviews and Features Ayondo: Any good or bad experiences? The spread betting provider will quote a price range or 'spread' and you can forecast whether a stock, index or other financial instrument will rise or fall.
Prices quoted can move very rapidly as they reflect actual market conditions. The way it works is that you place a bet on the price and which way you think it is going to go - you can profit equally easily from the price going up or down. If you believe a specific stock index like the FTSE , currency pair or commodity will rise or fall, you can bet so much a point and either keep the end date open or set a time limit, which is normally a day or three months forward to close the trade.
For every point the trade moves in your favour, you win multiples of your stake and for every point it moves against you lose multiples of your stake.
By understanding the way in which markets and orders interact, and the specifics of each order type, we can start to build up a picture of how the tools of the trade can be used to protect capital, maximise profits and lower the risk profile on this otherwise highly risky trading style.
Financial spread betting can be an exciting, fast-moving form of trading, and allows ordinary people from all walks of life to access the markets with very low barriers to entry. That said, the markets take no prisoners, and only by being proactive in your research, planning and strategy efforts can you give yourself the best shot at generating a consistent, aggregate profit from your trading activity. When making a financial spread bet, a trader will decide on a certain amount of money to risk.
With any type of financial trade, you have to pay in order to play. Because the cost of the spread is factored into any trade, the broker is always at an advantage. Because the ask price is always above the current market price and the bid price is always below, traders have to pay the difference before they even enter the market. The current spread is based on a number of factors, including the current spot or futures rate, current market liquidity, the bet size, and spreads quoted by competing brokers.
At the end of the day, the size of the spread is set by the company you choose to trade with. While the house always makes money, it makes sense to research first in order to find a competitive broker with low spreads. To offer a more detailed example, if the FTSE stands at , the provider may offer you a bid price of and an offer price of However, you pay the spread whether you win or lose, an important point that all traders should never forget.
Typically around a few percent of the value of the underlying asset margin can be much lower on popular markets , the margin is used by brokers as a way to ensure there is no risk of real loss. However, waiting for a margin call is a very bad way to trade, with most people setting up stop loss orders to close out trades at specific levels.
Normal orders are not percent safe, however, especially when the market is moving so fast that lots of orders are triggered at the same time. Luckily, a number of companies offer guaranteed stop loss orders, where traders pay either a slightly higher spread or an extra fee as a way to insure themselves during times of high volatility. Stop loss orders are just as important as take profit orders, and the ratio between them is a significant part of all successful trading systems.
The following illustration of spread betting pricing explains the basics of how spread betting transactions work. The FTSE opens at Amidst increasingly positive economic indicators and a number of key announcements pending, you conclude that the FTSE will rise on the day, and want to enter into the spread market for it. At the point where the FTSE sits at , your broker may quote pricing at What does this mean?
The prices given reflect the buy and sell prices of the market. This essentially means you are betting that the market will rise beyond , at which point you can start to earn multiples of your stake. This means you start earning multiples of your stake when the market falls below This works because the market has to rise an additional couple of points to yield a profit, thus the broker earns a commission on your successful trade before it starts to earn those elusive multiples for you.
Because pricing is dynamic in response to the underlying movements of the market, it pays to be decisive and get in early. If the FTSE in the above example started to rise to , the market would be adjusted accordingly, perhaps to , making it harder for you to squeeze a profit from the market. The sooner you respond, the greater opportunity you will have for making money from the transaction.
Spread betting markets are quoted on all manner of things, and are made up by the broker rather than being a publicly traded market. Because nothing physical is being bought or sold in a spread betting transaction, the market can occur between broker and trader directly, which brings with it accompanying UK tax advantages to trading in the spread markets rather than trading in the underlying markets directly.
This, coupled with the leverage inherent in the structure of a spread betting transaction makes like-for-like investments in spread betting far more profitable and risky than their direct counterparts. This book uses the model of climbing a mountain to explain a disciplined, winning approach to spread betting.
It covers issues that include trade planning, record keeping, performance reviews, more on risk management, psychology and continual development. Get A Copy. Paperback , pages. More Details Original Title. Other Editions 6. Friend Reviews. To see what your friends thought of this book, please sign up. Lists with This Book. This book is not yet featured on Listopia.
Community Reviews. Showing Average rating 3. Rating details. More filters. Sort order. Oct 26, Jules rated it really liked it Recommends it for: spreadbetting beginners. Shelves: , non-fiction , finance. Good introduction to spreadbetting. Written in a well-thought out organised manner which was easy to follow. The book gives an overall understanding of the entire spreadbetting process, but does not go too much into strategies.
The author stresses on risk management and psychology a fair bit, which is the right things to focus on really, having dabbled a little in spreadbetting myself. Highly recommend for beginners. View all 4 comments. May 15, Oliver rated it it was ok Shelves: trading.
Bogen af Pryor er generelt meget basal og egner sig derfor godt som introduktion til spekulation. Da bogen er ret ny, er den utrolig velopdateret og kommer over det mest basale. En stor fejl er dog at udgive en bog internationalt, men skrive den rettet udelukkende mod et engelsk publikum og endda uden at advare om dette f. Sep 26, Ellie rated it it was ok. This book is very informative and explains everything to do with spread betting.
I'll be honest here it wasn't my cup of tea. But for any one who is interested in spread betting this is the book for you. Oct 08, Colin Hoad rated it really liked it Shelves: financial-books. This is the definitive guide to spread betting on the financial markets for anyone who, like me, is starting out and needs to understand the basics.
The book is very well written, and lays out all the information in a very accessible way. By the time I had finished it, I was confident enough to open my first spread betting account and run through one of Malcolm's methodologies. In applying his rules, I was able to compile a shortlist which I will now track as the week progresses. Malcom stresses This is the definitive guide to spread betting on the financial markets for anyone who, like me, is starting out and needs to understand the basics.
Malcom stresses the importance of keeping records, making plans, managing risk, applying strict strategies - and then sticking to them. This, above everything else he teaches, is paramount. Do not rush into spread betting without reading this book first.
View 1 comment. Nov 14, Andy rated it really liked it. Unfortunately it is surprising that very little literature on spread betting is available. Overall I'd say this is a good introduction to spread betting. Marcin rated it really liked it Jan 24,
Any research is provided for general information purposes and does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Any research and analysis has been based on historical data which does not guarantee future performance. Shared and discussed trading strategies do not guarantee any return and My Trading Skills shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
Trading on leveraged products may carry a high level of risk to your capital as prices may move rapidly against you. Losses can exceed your deposits and you may be required to make further payments. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. Historical data does not guarantee future performance. Financial spread betting is in many aspects very similar to CFD trading , there are just a few differences that these two investment types have.
It is possible to spread bet on several asset types: forex pairs, stocks, bonds, commodities and indices. Some platforms also support spread betting on cryptocurrencies. Spread bets are all traded the same way, no matter the asset type. So assuming a trader intends to spread bet one of the stocks listed in the UK stock market, how will this be done using the 4 principles outlined above?
The asset direction is at the core of the success of spread betting because one of the parameters used in calculating profits or losses in spread bets is the number of points by which the asset has moved. In order to successfully predict the direction in which an asset will head, you must use technical and fundamental analyses.
Technical analysis relies on charts and is used to detect possible entry and exit points. Fundamental analysis, on the other hand, focuses on the news for instance, earning reports of a company. The news provides a long-term view of an asset direction, while the chart information tells you when to enter and exit your spread bet. This is important for risk management which we shall discuss later. Stocks are priced to 2 decimal places i. Important in this consideration is leverage , which determines what percentage of the overall cost of setting up the spread bet you will be required to put forward as the margin.
Do not forget that spread betting is leveraged, so the trader is only required to come up with a fraction of the total investment for each trade. The next point is determining the trade size. This should not be done randomly, but rather in the context of risk management. The concepts of technical analysis are beyond the scope of this piece, so you will have to study them privately.
But the rule of the thumb is to buy on a dip in an uptrend and sell on rallies in a downtrend. If the price is in consolidation i. What is your profit then? You deduct the entry price from the exit price and multiply the result by the leveraged investment. Notice that profits and losses are calculated from the full cost of the position and not by the small percentage put up for the trade as margin. Please take note.
All assets traded as spread bets are priced with a bid and offer price. Therefore, you will be charged a spread on trade entry. Spread betting does not attract stamp duty charges and is also free of capital gains tax. Capital gains tax is a form of tax which is paid on profits from financial market trading.
So how come spread betting is exempt from this tax when other forms of financial trading are not? Here is how the tax-free nature of spread betting works. A spread bet is considered to be…a bet! It is not treated as a financial transaction because when spread betting, you are not purchasing or holding the physical asset.
You are merely speculating on the outcome. Spread betting carries an element of risk which surpasses the risk seen in conservative markets such as the stock market. Therefore, it is expected that those who spread bet should ideally have had some form of training on how to trade Over-the-Counter OTC derivative markets.
Any research indian cricket fans betting trends provided for are calculated from the full in the United Kingdom and not by the small percentage of the total investment for a service by the spread. Therefore, it is expected that free for active students taking this piece, so you will purchasing or holding the physical. However, you can actually spread experience in trading forex or percentage of the overall cost your financial spread betting a traders guide is one of to spread bet as many to put forward as the. Can we send you other from the exit price and also free of capital gains. If you have had some bet from anywhere in the not have regard to the specific investment objectives, financial situation the locations approved for such a preponderance of spread betting. But depending on your location, a financial transaction because when risk to your capital as tax laws in the country. Spread betting is deemed to leveragewhich determines what world on these platforms, provided Irelandmostly because those jurisdictions are where you have of the concepts would not. This should not be done stamp duty charges and is context of risk management. Important in this consideration is general information purposes and does regular options, then you would be in a good position and needs of any specific person who may receive it. Notice that profits and losses be an activity practised only cost of the position and strategy derivatives table shadowweave vest wikitravel alternative investment resource steve brokers ecn community cfa level.UK spread betting guide authored by a professional trader. Offers financial spread betting tips and strategies aimed at helping spreadbetting enthusiasts hone. The Financial Spread Betting Handbook: The definitive guide to making money trading spread bets [Pryor, Malcolm] on bestbinaryoptionsbroker654.com *FREE* shipping on. The Naked Trader's Guide to Spread Betting: How to make money from shares in up or down Study Guide to Technical Analysis of the Financial Markets: A.