Financial Spread Betting on Gold Explained

Uploaded by vincestanzione77 on 08.04.2012

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 "" h45& h45& hy;j Example of betting on gold Microsoft Office Word Hewlett-Packard
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