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What is Spread Trading? PDF Print E-mail
Written by Editor   
Wednesday, 28 July 2010 15:13

So what is Spread Trading? Most investors reading this article will have bought and sold shares through a traditional stockbroker.

And many readers will be wondering how they can get involved in the markets for the first time.

South African investors - large and small - now have access to a quick, easy and low cost way to trade individual shares, foreign exchange, stock indices, commodities and interest rates.

Until recently investing and trading was done via traditional broker channels with very limited markets.

To make any decent amount of money one required a large outlay of cash. One also needed a great deal of patience before seeing any good return on those investments.

With the advent of Spread Trading you pay no commissions or other fees when you trade. You can also make a great deal more money than you initially put into your account.

You can make this money quickly if you make the right calls.

But, you can just as quickly lose it.

>> See an example of a spread trade

 

 

Risk Involved

Spread Betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice if necessary.

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