What is Financial Spread Trading?
FSTs are aimed at the more experienced investor. FSTs work in a similar way to ordinary share dealing, but with a number of additional features. A Financial Spread Bet allows an investor to bet on whether they believe that the price quoted for a particular financial instrument is likely to strengthen (go up in value) or to weaken (go down in value). The profit or loss for an investor is determined by the difference in the price you open your FST at and the price you close it at. . When dealing in FSTs you get indirect access to stock’s or indices’ price movements. In other words, you access share price movements without ever taking delivery of the actual shares. As an investor in FSTs you will be effectively betting on which direction the share price will go, so you can make or lose money when the value of a share falls as well as when it rises. In addition, because FSTs are ‘geared’, you simply pay an initial deposit of as little as 10%. This allows you to take a larger position than
