Forget the pips and the complications of Forex trading, there’s a new player in town and it’s called Forex Spread Betting. Now all you need is a spread betting account and to actually know what spread betting is (and of course what forex is) So let’s start with Forex:
Forex is foreign exchange or currency trading. With Forex you take 2 different currencies for example the Japanese Yen and the US Dollar and you compare their current traded values at given time of the days (the trading in currencies is done live).
Spread Betting was originally taken from sports betting where there were 2 options for the bet – above and below the spread. The spread is a mid result which is given by the bookmaker and the gambler placed a bet on whether the final result of the match will be above or below the spread and if he won he got the difference between the highest or lowest border of the spread (the value) times the amount of the bet. If he lost – he lost the money he risked times the difference between the lowest or highest border of the bet.
So there you have it – Both Forex and spread betting explained. Now you need to know how to combine between the two.
It’s pretty easy – spread betting the currency exchange is the same as spread betting for sports betting results only you bet on currencies.
In order to start Forex Spread betting you need the following:
1. Spread betting account with a company, handles live Forex trading feeds.
2. Knowing what you are doing.
3. Keeping yourself updated with market trends.
There are many companies offering Forex spread betting. Financial spread betting is the next generation of the good old Forex and since Forex gained popularity over the past 5 years, spread betting is gaining popularity even faster.
Another reason for the popularity of spread betting is the fact it’s licensed and it’s tax free (UK).
Currency Exchange is one of the most popular trades in the world and the fact it’s available online makes it even more popular with the large verity of currencies offered.