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TheStreet Open House

Spread Betting Guide To Trading On Indices For Beginners

LONDON, April 24, 2012 /PRNewswire/ --

Spread betting with City Index enables investors the flexibility of going short and selling markets, enabling them to potentially profit from markets as the fall, as well as going long and potentially profit from rising markets as well. In the following easy-to-follow guide, beginners can learn how they can go short and sell on a trade with a spread betting account.

Spread Betting with City Index

Investors choosing to spread bet with City Index can benefit from:

  • No Capital Gains Tax or Stamp Duty*
  • Ability to go long and short on a market
  • Access to over 12,000 financial markets
  • Easy access through its high leverage feature
  • Leveraged trading

Tax-Free Trading

At present in the UK, investors can benefit from paying no Capital Gains Tax (CGT) or Stamp Duty on profits made through their spread betting account. However, this is subject to change and investors should seek independent advice if necessary.

Spread Bet Markets

With access to over 12,000 spread betting markets, investors can place trades on the future price movements of shares, indices, currencies and many more - for only a small percentage of the underlying market's price as an initial deposit.

Leverage

As mentioned above, the initial deposit for accessing these markets is only small; with City Index, investors are required to pay typically between 1% and 10% of the underlying market's total value, allowing easy access into the world of trading for many new and part-time traders.

Commission free trading

There is no commission charged for each of your spread bets. However as the name suggests, there is a widened spread, which is one of the chief costs of placing the spread bet.

Spread Betting on Indices

Indices are the most widely traded markets in the world. Investors choosing to spread bet on indices with City Index can benefit from some of the tightest spreads available.

For example, the following markets are available to spread from just 1 point:

  • UK 100
  • Wall Street
  • France 40
  • Germany 30

How to Spread Bet on Indices

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