Forex revolutionized the foreign exchange market enabling anyone to trade currencies. The only problem with forex is that it’s too complicated for most people to understand, and this caused many people to lose money on forex and develop a negative relation to forex.
Currency exchange (forex) doesn’t have to have pips and other complicated definitions in order to make money, and so came the spread betting to make the currency trader’s life MUCH easier.
Forex spread betting is the new hype in the currency trading industry and the financial markets. The thing that makes it even more popular is the fact that it’s available online and it’s regulated and licensed in the United Kingdom which makes it tax free and perfectly safe for gamblers or investors.
It works in a way that makes it as easy as possible for trader to invest in currency exchange, the spread betting company defines a spread (high and low value) of a currency and the investor place a bet on whether that value will go below or above the spread.
If we take the US dollar and the British pound for example, the spread can be that the pound is worth $1.8 – $2 – this is the spread. The bet is limited in time and the investor needs to decide whether at the end of the bet the value of the pound will be below or above that spread. If the investor is correct, he will make his bet amount times the difference from the spread – for example – If the investor bet on the value to be above the given spread and invested $10 bet and the value was set on $2.2 at the end of the bet, he will make 2 units times his bet =$20.
As simple as that.
Trade Forex Spread betting is the new generation of forex and everybody can join and place bets. It’s as easy as sports betting and as profitable as forex. The bets can be placed live online and the winnings can be claimed to the bank account.