Insurances.net
insurances.net » Investing » Trading The Worlds Financial Markets
Finance Investing Loans Personal-Finance Taxes Loan quotes
]

Trading The Worlds Financial Markets

With the world in recovery mode, many people are still questioning how the markets got so out of control

. They are also questioning something a little closer to home; their own finances.

If we were to be honest with ourselves, then we should probably accept that we can improve on at least a couple of the following; tax efficient investments, long term investments, actively reviewing our existing investments and looking at new opportunities that the financial markets are currently providing

I am sure we all appreciate that we could benefit from planning more.

The one thing you can see in the newspapers and financial websites is that more and more people are turning away from just having a pension and a few stocks and shares.

One style of trading, namely spread betting, is gaining popularity. It offers a good number of benefits compared to traditional share trading and the ease of access to numerous international markets, speed and number of trading opportunities, make it an attractive option.

Before I go further though, it should be noted that, as with all forms of speculation, there is a downside. You can lose more than you initially staked.

It"s reasonable to ask, "why should I trade?" As we have just discussed, all forms of investment carry risks. Of course, they also have upsides and a spread bet is no different in that respect. In this case, apart from the potential profit there are certain tax advantages as well as quick and simple access to the financial markets.

There are many advantages. Firstly, spread trades are not liable to capital gains tax, income tax or stamp duty*. You are not actually exchanging any assets or stocks and shares. You are only speculating on the future value of financial markets.

Traditional stock trading can be limited. Spread betting offers a wider range of world markets and, whilst that still includes stocks and shares from around the world, you can also spread bet on stock market indices, gold, oil and forex rates.

An important feature in fast moving, volatile markets is that you can trade quickly. You are not actually buying or selling any rights or assets. You are purely speculating on the future value of a market.

Spread betting companies are increasingly offering a wealth of trading data to their clients. Naturally, you can get live prices and candlestick charts but you can also get Technical Analysis, Events Calendar, Company Specific Data and Market Heat Maps.

So where to trade? Make sure your spread betting company is Authorised and Regulated by the Financial Services Authority, this generally ensures a certain quality level. It also offers a degree of consumer protection.

So whilst there are many positives, it is important to understand the negatives.

Spread betting carries a high level of risk so you should only speculate with money you can afford to lose. Like the adverts say, before trading, please ensure that spread betting matches your investment needs, make sure you familiarise yourself with the risks involved and, where necessary, seek independent advice.

* Based on current UK tax law, if you pay tax in another jurisdiction then tax law may vary.

by: Robert Thomas
Trading The World Gold Market Trading The Us And Uk Crude Oil Markets Option Trading Course: Why It's Necessary To Get One Whats Changing With Online Banking? Es Emini Day Trading: The Basics-long Or Short On Your Trades How To Find The Best Leasing Option For Commercial Truck Leasing A Dismal Decade? No Way - Market Cycle Investing Planning To Be A Forex Affiliate Things You Should Expect From A Forex Affiliate Program Basic Concepts Of Forex Day Trading What Is Single Premium Deferred Annuity (spda)? Technical Analysis Course - A Close Look At Charting And How Weak It Can Be Leases Leasing Important Hint
Write post print
www.insurances.net guest:  register | login | search IP(52.54.111.228) / Processed in 0.011051 second(s), 5 queries , Gzip enabled debug code: 30 , 3438, 176,
Trading The Worlds Financial Markets