In an age where the cost of living only ever seems to increase, increasing numbers of people are looking for ways to supplement the income provided by their main job. In doing so, many are considering ways that money can be made whilst on the move or away from home through the use of technology, turning what would otherwise be unproductive “dead” time into time that is generating money and a useful second income.Spread betting is one of a growing number of ways to achieve this and is more popular and readily accessible than ever before.
What is spread betting? Spread betting is not betting in the conventional sense of the word but instead involves taking a position on whether a share or product will increase or decrease in value over a given time period. If, for example, a share is priced at 3 pounds and I believe that at some point in the near future the price is going to rise then I take what is known as a “long” position in that share. This means that for a £1 stake (plus any appropriate deposit) I make £1 for every 1 penny increase in the price of that share. If, after my bet, my shares price rose to £3.10 then I would earn £1 x 10 = £10. There is no need to deal in such small stakes, however. A £10 stake on the same outcome would return £100 (£10 x 10). Many spread bettors hold their positions over long periods of time during which the share price may rise by several pounds making for potentially big yields.
One of the great advantages of spread betting is that as well as being able to bet on shares increasing in value, it is also possible to bet that they will fall in price. This allows the better to make money both in bull (up) and bear (down) stock markets, something that is not so easy to do when trading in real shares. Betting on a share price to fall is known as taking a “short” position and works in reverse to the process described above. Believing the share price will fall from £3, I take a short position at a stake of £1. If the share price falls to £2.90 I make a return of £10.
Spread betting is now more accessible and flexible than ever and, thanks to technology, is no longer the preserve of business-suited professionals working in the City of London. If you have access to an internet connection then you are just a short registration process away from beginning your spread betting career today. As previously mentioned, the possibility to spread bet is not restricted just to being at home in front of a desk top computer. Many spread betting companies now have state of the art apps for mobile telephones and tablet devices that allow a person to trade in spread bets from pretty much anywhere where there is internet access or a mobile phone connection. Spread betting is therefore an excellent potential way of making some extra income whilst on the move or away from home, just as much as it is whilst at home.
Although the vast majority of spread betting opportunities revolve around stocks and shares, a number of spread betting companies offer the chance to trade on a number of other things as well. These can include politics with bets offered in the form of which person or party will win a particular election, how many seats they might win or lose and what percentage of vote share they will obtain.
Many spread betting platforms, such as those offered by CMC Markets, provide potential bettors with free and useful information to help them make informed choices about their bets. These include extensive background information and news about the various companies or products that they may be interested in trading in. This information includes things such as market sentiment on a particular item, usually in the form of what percentage of traders are “long” or “short” on the product or share. Recent company announcements and profit or loss warnings also feature as do a whole host of charts and graphs which allow betting to be approached from a more technical and analytical angle.
With this in mind, there has never been a better or easier time to begin developing a second income from spread betting.