Financial Spread Betting: Ideal for Short-Term Traders

LONDON, February 25, 2011 /PRNewswire/ -- Financial spread betting ( http://www.finspreads.com/About_spread_betting.aspx) takes several forms. Day, rolling, monthly and quarterly spread bets all lend themselves to certain traders more than others. The suitability of each type is based on the timeframe each spread bettor prefers to work within. All things considered however, spread betting is generally seen as more suitable for shorter-term traders than their longer-term equivalents.

Joshua Raymond of Finspreads (http://www.finspreads.com/) explained: "[In spread betting] there are contracts that you can spread bet on if you have a long-term time horizon. But the majority of traders use spread betting predominantly for short to medium-term trading as spreads are much tighter for shorter-term contracts."

With this is mind, it is not surprising to learn that spread bet positions are generally held for shorter times than standard share trades. "The times that spread bets are typically open for range from a minute by minute basis to a quarterly basis," stated Market Strategist Raymond. "Certainly at Finspreads very few are left open for longer than six months."

So, what else makes spread betting ideal for the short-term trader? One prime incentive above standard share trading is that any financial spread betting profits traders make are currently free of stamp duty and capital gains tax*.

Spread betting also allows you to trade on the price of expensive commodities and stocks without having to pay to own the product in question. Another reason could be that people observing the markets over time have noted the daily volatility, and the trading potential it can create.

The rise of mobile trading has also helped to make short-term spread betting more accessible. Now traders have the autonomy to open and close spread bets on stocks, commodities, currency and more wherever they are, whenever they like.

Finspreads offers competitive tight spreads starting from just one point on UK 100, Wall Street, and Germany 30. For details, visit:

http://www.finspreads.com/About_spread_betting/Spreads_and_margins.aspx

Spread betting is a leveraged product which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

*Spread betting is exempt from UK stamp duty and UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.

About Finspreads

Finspreads is a leading online financial spread betting firm, offering access to thousands of instruments on the world's financial markets. We pioneered fully interactive online spread betting in 1999 and we continue to invest in technology to ensure that our service remains amongst the market leaders.

Our goal is to make spread betting as straightforward as possible for every trader, whatever their level of experience. We focus on delivering quick and easy access to the tools and information our customers need to make their trading decisions, act on them, then monitor their performance. We also offer a comprehensive education and support package to help our customers understand and take advantage of the opportunities offered by spread betting.

As a result of our commitment to price transparency, trading education, and great customer support, we have attracted tens of thousands of traders ranging from beginners through to those with decades of experience. For more information go to http://www.finspreads.com/.

Finspreads is a trading name of City Index Limited, one of the world's largest providers of derivative trading services for retail investors. Visit http://www.cityindex.co.uk/ for more information.