A few smart people have realised the potential this has; now you can learn of this phenomenon too.

The biggest barrier facing most prospective investors is the need for a large start-up bank. It seems like everyone has the know-how required to become a top investor but hardly anyone has the necessary bank needed to make it worthwhile.

Finally someone is going to show YOU a new method that can produce stunning profits with an initial bank anyone can afford.

 The buzz in the investing world right now is surrounding financial spread betting and its appeal to the small time investor.

Why? Because financial spread betting has several advantages over the regular trading of shares:

1. Profits that you will make through financial spread betting are free from tax.
2. Really impressive profits can be achieved through an initial investment of just 500 pounds.
3. Shares with falling prices can also be traded for profit.
4. Markets include individual shares, entire indices and even commodities. 5. Trades are commission free.

Now, down to the technicalities of financial spread betting. How does it work?

First, the concept of a spread:

At any given instant in time a market will have a given spread. Basically this is the points interval that provides the spread betting firm with a profit.

The best way to explain this concept is with an example. Let us take an arbitrary share, call it share A.

Let us also assume that we are trading on the futures market, with a final date one month away. The current share price is 100.

The spread given to us by the spread betting firm is 98-102. This indicates that the spread betting firm believes that in one months time the share price for share A will be between 98 and 102.

The decision you have to make is do you think it will be higher or lower than this?

If you think it will be higher, you place a’buy’ bet at 102.
If you think it will be lower, you place a ‘sell’ bet at 98.

Let us examine the case after we have placed a ‘buy’ bet for 5 pounds a point.

Now, if the price rises as we had expected, and reaches 120, say, then we have made a profit.
The figures look like this:

Number of points profit = 120-102 = 18
Actual profit made = 5 pounds * 18 = 90 pounds

Of course, there is a flip side to this if the price actually falls. Let us now assume that the price has fallen to 84.
The figures look like this:

Number of points loss = 102-84 = 18
Actual loss made = 5 pounds * 18 = 90 pounds 

So, as you can see the potential gains have to be weighed against the potential losses.

To find out more about financial spread betting, why not request a free comprehensive book ‘The Beginner’s Guide To Financial Spread Betting’ at www.tradindex.com

I have been able to make several killer profits during my time with spread betting. The best came when I was trading the daily Dow Jones index; I made an incredible 62 points profit in one day, which equated to a 620 pounds profit from a single trade at just 10 pounds a point.
The free book at www.tradindex.com helped me achieve this fantastic result and will be able to guide you through the whole process better than I ever could. It will teach you some valuable lessons, including how to limit your losses when things are not going your way.

Through all the experience I have gained, I think that the best way to make money from financial spread betting is to start small and compound your winnings by betting a little more each time you make a profit on a trade.

Furthermore, like the old saying goes, don’t put all your eggs in one basket. You wouldn’t risk all your money on a single share if you were trading the traditional way and there is no reason to here.

Financial spread betting is by no means a guaranteed method of making an income. Bet wisely and sensibly. I will not be held liable for any losses incurred through such activities.