Spread betting can be defined as a kind of speculation that involves betting on the price movement of a security. Normally a company involved in spread betting quotes two prices i.e. the bid price and offer price.
The difference between the buy price and sell price is what is referred to as the spread. Investors then proceed to place bets as to whether the price of the underlying stock will be lower than the bid price or higher than the offer price.
In spread betting investors involved never own any shares in the underlying stock; their core interest is in speculating on price movement of the stock. Traditionally the company that bets on the spread profits from it, this facilitates betting without paying commission.
Spread betting account
A spread betting account is an investor’s way to trade in the financial markets. Funds have to be added to the account to cover spread betting positions and manage any open positions for the investor. The spread betting account is accessed via a web-based trading platform that displays live prices on all the available markets that can be traded in.
The current status of spread betting
Popularity of the Internet today has greatly promoted growth in spread betting. Most private investors use it as a smart way to make a profit. It is a fast growing business with a lot of players. The spread betting market is more or less stable and this is a positive sign for future growth. Its popularity into the future is very promising as many people keep discovering the uniqueness of this type of betting.
The future of spread betting one year from now
It has been expanding the globe over since 2002 under a different product called Contract for Difference. The probability of spread betting continuing to grow exponentially is 0.99 as this has been the trend since it started three decades ago.
Some of the indicators of where spread betting will be one year from now include the following:
Exponential growth in number of spread betting companies
A key indicator of future growth in popularity is the ever increasing number of spread betting companies from their initial meager number.
- Better services by spread betting companies
The success of early investors has inspired many others leading to marketplace with cut throat competition evidenced by spread betting companies offering tighter dealing prices and extremely efficient services. This is likely to continue a year from now. A good example of companies with efficient services is CMC Markets.
- Increase in number of gamblers
The spread betting market continues to experience growth in recent years with gamblers trying their lack. This trend is likely to continue even a year from now. Investors that are willing to take greater risks are increasing by the day.
A year from now, technology will have taken great strides and by doing so have a great impact on the ease of trading. This will be through cellular apps that will offer greater access to regular trades and so forth.
- Tax free spread betting gains
The popularity of spread betting is likely to increase in the next one year especially in places like the United Kingdom where gains earned from spread betting are free from tax. This has promoted the trade significantly.
- Popularity of retail trading products
The popularity of retail trading products used in spread betting has gained popularity beyond the geographical borders of the United Kingdom. This is a huge indicator that it has a great potential for growth abroad in the next one year.
- Emerging markets
There have been emerging markets in Europe, Australia, and the Middle East. This also indicates growth potential as investors in these regions have appreciated the profitability of spread betting products. One year from now, spread betting in these emerging markets will be well established.
- Sister Product Name Marketing
Spread betting has been expanding worldwide under the umbrella of a sister product called Contract for Difference (CFD), this exempts it from the gambling tag.
Now you know where spread betting will be one year from now. Join the bandwagon today and engage in spread betting to make a profit. Without a doubt, it can plausibly be argued that the future of spread betting is bright as all indicators point in that direction.