What are the Best Spread Betting Tips?

For investors interested in the growing niche of spread betting on market activity, there are several spread betting tips that one should adhere to when undertaking the endeavor. While spread betting may sound no different from gambling, the reality of it is much more nuanced. Spread betting on financial market activity is similar in most respects to investing in futures for commodities, but with a calculation of points for or against — the spread — that helps even the field and gives the investor a cushion. Among the top spread betting tips are to use a reputable spread betting firm that offers a wide array of services, a volume-analysis model that helps investors uncover the micro-trends at play, and a diverse range of markets for an investor's financial speculation.

Though there are many similarities between spread betting and day trading, the key difference is that the former is a wager on performance, while the latter still requires the actual purchase of the investment. In certain respects, spread betting on stocks is similar to spread betting on sports, save for one thing — spread betting on stocks is much less susceptible to human error and the vagaries of competition.

The investment markets are almost wholly statistical, so one of the most effective spread betting tips is to analyze and utilize the data found in the overall volume of shares traded in a particular market on a particular day or two of trading. Volume offers numerous clues and cues about a particular stock's short-term future.

For example, say that the level of volume on shares for Company A is thin and growing thinner. While it is possible for Company A to still have a stock that is rising per share, the overall volume could still be thinning out. This reduction is an indicator that something is about to happen to Company A, and that the bottom may fall out from under it. In such an event, a spread bettor has a great opportunity to find a firm that will offer a generous spread on a loss bet for Company A — who shows all other outward signs of health and solvency — while turning a quick, one-time profit for the bettor. This is among the most important of the spread betting tips in popular use.

Other spread betting tips include ensuring that an investor has the ability to place bets in multiple markets throughout the global economy. Some firms restrict their available wagers to U.S. markets, which can inhibit the diversity required to turn spread betting into a consistent investment vehicle. Make sure that the spread betting firm in question has no limitations on the markets that they offer for betting.