The best way for you to understand what financial spread betting is all about is to compare it to traditional betting systems. Where traditional betting involves speaking money on an outcome of an event where the odds are fixed, and your prediction turns out to be correct like the boxer you bet on won, then you win and your winnings are multiplied against the odds. But if you lose because you predicted wrong, then you lose the money that you bet. In traditional betting, usually the odds are fixed way in advance so you can make a right production or you can make a row prediction.
In financial spread betting, think of the exact opposite of traditional betting. One, there are no fixed odds, and two, you do not have to make a prediction of the exact results of the game or in this case event. So whether you predict that something will lose you still win ballstep2. The key here is to predict on the right side of the spread which had been offered by an indexing company.
A for example, a spread the acting company will offer a spread all 400p to 430p on the price of a specific share. The 400p is the selling price while the 430p is the buying price. Now, you should start thinking about where the prices are going to go, up or down. So he designed to buy at 430p. Over the succeeding days, the price did go up as you had thought it would, so you now make a choice to take the profit. You can do this by selling at the 430p mark for $10. Your profit, based on the bet you made should be $300.00. The same thing happens when you predict that the market will fall. Should the market go according to your prediction, you can still make the same profit.
In financial spread betting, it does not matter what the actual outcome of the event is, as long as you make the right prediction, the market prices can go up or down, and you still make a winning. The best benefit however, is not on the flexibility of the betting system; it is the fact that any winnings made in the trading are not taxable. This is just one of the lures which have made this type of betting very popular, especially in the UK where there are millions of people involved in the betting.