New sports wagerers often wonder exactly what all the signs and numbers indicate when they take a look at a probabilities board While many spread betting guide wagerers and sports fans in general are accustomed to seeing the point spread, they do not necessarily know what it implies.
When dealing in Shares you handle the variety of Shares not ₤'s per point (1000 Shares not ₤ 10 per point) although the direct exposure is the same. So for example if opening a CFD position in say NEXT (NXT: LON) this would be priced quote in the very same method as if a normal share purchase was being made. i.e. 'purchase 1000 Next CFDs' - with spread betting you are technically betting spread betting on the cost motion of the share so the equivalent trade would be 'purchase Next at ₤ 10 a point', where a point is a 1p movement in the share cost. Note that the exposure is still basically the same. In both cases, you just 'buy' if you think that the rate is set to increase, or vice versa.
Spread betting is a margined product that only requires you to transfer a little portion of the full value of your position. This implies that the potential for profits, or losses, from an initial capital outlay is substantially higher than in conventional trading. The margin needed moreÂ… is typically between 1 % and 10 % of the total value of your position, depending on the market. At City Index, we offer costs on over 12,000 spread wagering markets. See our range of markets area to find out more.
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