Spread Betting Pros & Cons

Pro's

1) It's tax free

2) You can trade on credit or leverage

3) Short trades (trade on things to go down in value rather than up)

4) Dabble in the indices and commodities markets

5) STOP LOSSES. You can guarantee when you exit a trade if it goes against you.

Con's

1) Losses due to credit/leverage can be unlimited

2) Gives you the illusion of control which leads to over trading

3) Costs increase the longer you have open trades

4) Spreads (cost of entering trades) can be expensive.

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