Financial Spread Betting has something to offer various categories of people, including:
Newcomers to the stock market
Long-term investors
Short-term investors and speculators
However, financial spread betting is not for everyone as financial spread betting is a leveraged product. With any trading product that is said to be ‘leveraged’ the profit and loss potential becomes magnified. Leveraged, or ‘margin’ products, usually require the investor to outlay only a small percentage of the total cost of the underlying asset. The magnification of potential returns on investment is a key reason for the increasing popularity of financial spread betting. Potential losses are also magnified in the same fashion.
Find out more about understanding spread betting risk [external link]