Money Infant

When considering a forex broker, many UK residents need to distinguish between true forex providers and those brokers who provide what is known as spread betting. The industry of financial spread betting gained popularity in the UK some 10 years ago, mostly because of technological advances that made information on companies available more quickly and easily.

Primarily it was the internet that enabled the fast dissemination of information and easy availability for all investors. New trading platforms emerged to take advantage of the capability of the internet and online spread betting was born. It was cost effective, convenient and flexible which made it attractive to the spread betting companies as well as to the investors. Increased cos effectiveness enabled companies to narrow their spreads, which led to an increase in the number of investors interested in this type of financial trading.

One of the foremost companies to take advantage of the new technology was Alpari UK and you can visit their site for an overview of Spread Betting. They can also provide you with tips and strategies that will assist you in your spread betting trading.

There are several ways to take advantage of financial spread betting. Below are three of the most popular:

1. Share Spread Betting: Batting on the movement of individual shares is one of the original financial spread betting techniques. This type of transaction allows an investor to profit from the movement (either positive or negative) of individual shares when they predict this future movement correctly.
2. Indice Spread Betting: Betting on the movement of the major stock market indices was a natural addition to the instruments available for spread betting. These types of transactions are based on the movement of a popular stock index such as the S&P 500, FTSE 500, or NASDAQ. Many investors feel more comfortable predicting the movement of the entire market rather than individual shares, making indice spread betting very popular.
3. Forex Spread Betting: Of course, many companies also have spread betting on the forex markets as an available option. Forex offers investors high liquidity, immense trading volumes, and markets that are open 24 hours a day. For these reason, there are many investors who prefer to spread bet on forex. Forex also offers outsized returns as the currency markets are known to have extreme movements that can lead to huge profits.

Spread betting is also available for sporting events, and many investors enjoy this type of spread betting as a break from the financial markets.

If you are a UK resident interested in spread betting, Alpari UK offers 34 currency pairs,
seven major indices, and 10 commodities in their spread betting accounts. Deposits are accepted in GBP only and the minimum trade size is 10 pence per pip. Leverage is available up to 1:500.