Spread betting is not complicated to understand. The principles can be learnt in a matter of minutes. I would imagine that what we do in our daily jobs is far more complex than the workings of spread betting or CFDs yet we do not refuse to investigate.
Let’s say we have £2k available to risk. Then, one may only have to put up £200 (based on a gearing of 10:1). This is generally known as leveraging your use of capital. You can leave the other £1800 in the bank generating interest. The other big benefit of spreadbets is that you can go short/sell just as easy.
Secondly, as opposed to what the mass media say about unlimited potential losses spread betting offers appropriate risk management mechanisms these days. If the stock/market falls for whatever reason, a stop loss can limit your loss. If you are still concerned that a stock might crash you could take out a guaranteed stop where your stop loss level will be honoured whatever happens (small premium payable for this additional peace of mind). Now, try asking your house broker for a fixed stop loss!
This is the section where we will provide online video training covering stock market (both fundamental and technical analysis) and spread betting in detail.