I have a little bit of a headache, and my wallet is empty as I type this. I lost approximately £30,000 in the past four weeks of spread betting for almost an hour every day, five days a week. I was able to waste around £1,500 per hour. That’s a substantial sum of money. It’s not nearly as horrible as it seems, in fact. Fortunately, I was placing bets on the demo websites of a couple spread betting organisations. You may practise using these virtual versions of their live betting sites before you start wagering with real money. I acknowledge that I am not a financial whiz; else, I would already be wealthy. The fact that I was able to lose so much money so rapidly begs the question: If spread betting is so simple, why do so many individuals lose everything so quickly?
In periodicals on investment and money management, spread betting advertising is becoming more prevalent. Four or five different spread betting سایت شرط بندی ایرانی businesses place full-page colour advertisements each week in the publication I subscribe to, outnumbering all other forms of advertising. Spread betting advertisements are already prevalent in the business sections of many weekend newspapers, and it won’t be long before they start to appear there as well. Many savers may find spread betting seductively appealing. After all, our savings in banks, stocks, or unit trusts would only yield, at most, a pitiful 5% a year before taxes. However, a good run in spread betting may easily allow you to earn 10% every week, or $5000 a year, fully and gloriously tax-free. Spread betting enables you to earn what most other investments would need a hundred years or more to accomplish.
Spread bettors wager on changes in the price of anything, including specific stocks, currencies, and commodities, as well as whole markets like the FTSE, Dax, or S&P. Spread betting gets its name from the fact that the firm offering the service generates the majority of its money by adding an extra spread around the price at which anything is being purchased or sold.
Spread betting looks to provide a number of benefits over conventional investing:
- You don’t have to purchase anything; you may wager on price changes without purchasing the shares, commodities, or foreign currencies that are the underlying assets.
- It’s tax-free. Taxes like stamp duty, capital gains tax, and income tax must be paid when purchasing or selling shares, receiving dividends, or receiving interest from a bank. Spread betting is regarded as gambling, so there are no taxes to be paid unless it is your full-time job and main source of income.
- You can go long or short. If you accurately predict the direction of a spread bet, you may profit whether prices increase بهترین سایت شرط بندی or decrease. In order to benefit from most other investments, the price must increase.
If the FTSE, for instance, is trading at 5551–5552, you may make two bets simultaneously—one that it will climb and one that it will decrease. These are only activated when the FTSE changes. Therefore, your wager that it will rise is activated once it begins to increase. In a similar vein, only your wager that it will fall gets activated if it does. So it may appear that you will win whether it rains or shines.
Exceptional leverage: If you wager, say, £50 per pip (a pip is often the smallest price movement you may bet on), you might easily gain four or five times your initial bet if the price goes in the correct direction. You can win a lot more money on a particularly strong wager.
You may wait for the breakout. Many stocks, currencies, commodities, and other speculative assets have long periods of stability followed by sharp up- or down-movements, or what spread-betters call “the breakout.”You may make a wager that it will only become active if the breakout occurs.
Loss caps: Should your bet turn out to be incorrect, you may include clauses that restrict your losses from going beyond your set limit.
You may change your mind mid-flight. With most bets, such as those on horse races or roulette, you must wait hopelessly for the outcome to find out whether you won or lost after the race has begun or the croupier has announced “no more bets.” You have the option to close your bet at any point while using spread betting. You may thus collect your wins if you are in the lead; if you are behind, you can either cut your losses or wait in the hopes that something will change and you will be in the lead once again.
Given all these spread betting characteristics, it ought to be rather simple to earn a decent amount of money without putting in a lot of work. I wish.
Approximately 90% of spread-betters, according to industry statistics, lose the majority or all of their money and terminate their accounts three months after they begin. Around 8% of spread-betters seem to consistently earn respectable amounts of money, and 2% of them appear to make enormous sums of money. I’ve attended a few presentations hosted by spread betting firms, and at one of them, the salesperson casually said that more than 80% of his clients lost money. Even many experts lose about six out of every ten bets.However, they may build their wealth by limiting their losses and maximising their gains when they win.
Why things could go horribly wrong
Spread betting seems to be so good at drastically destroying the wealth of most practitioners for a number of reasons:
Businesses want you to fail. When you initially create a demo or actual account, the spread-betting company’s exceptionally kind and helpful young people will contact you multiple times to see if there is anything they can do to help you get started. This exemplifies excellent customer service. The majority of the individuals that get in touch with you will repeat the line that they are simply trying to assist and that they are delighted if you succeed since their business only benefits from the spread. Some may guarantee you that they want you to succeed because the more you succeed, the more likely you are to wager, and the more the spread-betting organisation will profit from your bets. This may give you a positive feeling, persuade you that the business is transparent, honest, reliable, and supportive, and inspire you to use them for your wagering. It is a falsehood, however. It is true that the spread may account for a significant portion of the company’s earnings. However, a lot of your bets are against the corporation, so they want you to lose badly. In fact, over the last month, I’ve seen a number of businesses modify the terms on their websites to increase the likelihood that users would lose. Spread betting businesses are not your buddies; therefore, that is the first lesson. They gain more as you lose more. It’s that easy.
It’s difficult to break even since the spread betting operator keeps the first £50 of any winnings if you wager, say, £50 per pip and the price moves in your favor. For you to recover your £50 and double your money, the price must move in the correct direction by two pip increments and by three pip increments, respectively. However, if the price moves three pips against you, you lose your initial wager plus £50 for each pip, for a total loss of £200, or four times your initial bet.
