Financial Betting

Financial betting acts in parallel to the actual city. Prices are primarily set by the underlying market and quoted by the betting firms. So why use a spread betting firm?

Spreads tend to be higher but there is no commission or stamp duty to pay and any winnings are free from capital gains tax.

On a practical note the financial markets are their primarily to serve institutions. This leads to a trading structure that is ideally suited to large trades, but is cumbersome for small trades conducted by private clients. So contracts that are traded on LIFFE maybe to large, or commission charges to high compared to the amount to be staked.

Financial betting has been embraced by people who work in the city already, as they are already confident of how the markets work. Their motives may be to pit their wits against the consensus or more practical. Such as taking a contra position to their firm in a profitable year. This achieves a hedge for their year end bonus. The clientele is changing though, as the general population grows more sophisticated.

Everyone has a stake in the economy, either in a private company to economic growth, or in a public organization to the whims of the latest government initiative. So it is important that the general population get more actively involved in the financial markets. Leaving your future wealth in the hands of the government is no longer the safe option it was once thought to be. The dangers of governments changing policy are increasingly apparent. So people are taking on the responsibility of looking after their own future.

Financial betting is actually a misleading term. Betting is normally associated with taking on risk. With financial betting though you can reduce risks that are inherent to everyday life. Such as

· protect your pension or portfolio from falling markets by selling stock indices, or even short the equity itself, something that is not easy to do in the underlying cash market.
· if you're worried about your mortgage rate going up you can sell short sterling futures and use any profits to help pay for those increased mortgage payments.
· fix your exchange rate of your holiday money months in advance of going.
· or you can even buy oil futures to protect against large swings in the cost of a tank of petrol.

Your wealth no longer need be governed by the vicissitude of financial markets when you can trade cheaply and conveniently with financial betting.

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