How to Trade Forex with a Spread Betting Account
There are quite a large number of online brokers offering traders the ability to trade forex with a spread betting account. In case you are not familiar with spread betting: it’s not actually a form of betting. In many respects, it is the same as a trading account with a forex broker.
If you sign up for a spread betting account with one of the online market makers, you will notice that every currency pair has two prices: the bid and the offer. The difference between these two prices is the commission the market maker is actually charging you.
With spread betting you can trade (and profit) in a rising as well as in a declining market – as long as you correctly predict the direction of the price of a currency pair. You are not actually buying or selling a particular currency pair: you are in effect speculating on the price movement.
Just keep in mind that this is a highly leveraged form of trading, which means that both your profits and your losses will be magnified by an order of sometimes as high as 400:1.
