Financial Spread Betting on Gold Explained
bjbj Example of a Financial Spread Bet Gold s look at placing a trade on Gold. We can trade via phone, Internet and many cases now we can trade with a mobile phone such as an Iphone. All spread bets have an expiry date; we don t have to hold the bet until this date. In this case April Gold which is currently quoted at 1200.0/1205.0 The first price is the price we sell at the second is the price we buy at. We think Gold will go up so we buy 100 per point at 1205.0 One important factor in trading is to always protect your downside; however sure you are you need to have a safety net, in this case a Guaranteed Stop loss.
We will place our stop 25 points away, so if Gold hits $1180 then the bet will be automatically closed out. This means that our downside is know ahead of time, our profit is unlimited but our risk is strictly limited to 25 X 100 so 2,500. A few weeks in to the trade we see Gold is now trading at 1290/1295, we decide to take our profits and close the bet, so we now sell at 1290. So to recap Bought 100 at 1205.0 sold 100 at 1290 the difference is 85 points X 100 will 8,500 profit. We could have easily done the reverse and profited from a down move. Also notice whilst Gold is traded in US$ we are using as our betting currency.
To Summaries Financial Spread Betting can be used to profit from Rising or falling markets. It s possible to trade a diverse range of markets form one account. Bet sizes can be smaller than traditional futures brokers. Traders can use guaranteed stop loses to protect against unlimited losses, yet profits can be unlimited.
It is still important to realize that Spread Betting is a higher risk investment and it is advisable to learn and practice before placing real trades, also only trade with risk capital. Vince Stanzione has produced a home study course to teach private investors how to benefit from trading financial Spread Bets and Fixed Odds priced at 197. For more information please visit HYPERLINK “http://www.fintrader.net” www.fintrader.net h45& h45& hy;j Example of betting on gold Microsoft Office Word Hewlett-Packard Company Title _PID_HLINKS Microsoft Word 97-2003 Document MSWordDoc Word.Document.8 [Content_Types].xml _rels/.rels theme/theme/themeManager.xml sQ}# theme/theme/theme1.xml w toc’v )I`n 3Vq%’#q :\TZaG L+M2 e\O* $*c? )6-r IqbJ#x ,AGm T[XF64 E)`# R>QD =(K& =al- 4vfa 0%M0 theme/theme/_rels/themeManager.xml.rels 6?$Q K(M&$R(.1 [Content_Types].xmlPK _rels/.relsPK theme/theme/themeManager.xmlPK theme/theme/theme1.xmlPK theme/theme/_rels/themeManager.xml.relsPK