Forex

Financial spread betting is a high risk, high reward activity offering you access to the
world’s major financial markets. It has a wide range of applications and is suitable for
a broad spectrum of investors. It enables you to place a position based on the
information contained in this Guide, by betting on the price movement of the Dow.
When you make a financial spread bet, you never actually own the underlying asset.
Instead you are effectively placing a bet on the direction of the movement of the price
of the underlying asset. You then profit if the price quoted moves in the desired
direction and a loss if it moves against you. The profit or loss is calculated by
multiplying your stake by the price movement in the underlying asset, which is the
difference between the opening price and the closing price.
The concept
Financial spread betting is based on a simple concept. If you think that a certain
financial market or product will rise in value, then you buy the product. If you think
that a certain financial market or product will fall in value, then you sell it.
Once you have bought a financial market or product that you believe will rise in value,
then in due course, if your prediction is correct, you can sell the market or product for
a profit (if you are incorrect and the value falls, you make a loss).
Once you have sold a financial market or product that you believe will fall in value,
then in due course, if your prediction is correct, you can buy the market or product
back at a lower price, for a profit (if you are incorrect and the value rises, you make a
loss).