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        <title>05 What are the Advantages? : HID Financials</title>
        <link>http://betting.betfair.com/financials/education/what-are-the-advantages/</link>
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        <copyright>Copyright 2009</copyright>
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            <title>What are the Advantages?</title>
            <description><![CDATA[<p><strong>Bull or Bear</strong></p>

<p>One of the most apparent advantages of spread betting/trading is the beneficial option of going short (or sell) a stock or share. You can therefore benefit from either a rising or falling market!</p>

<p><strong>No Commission or Fees</strong></p>

<p>Because Tradefair Spreads is not a stockbroker, we do not charge any commission or fees. The only 'fee' is the spread we charge on the prices that are quoted.</p>

<p><strong>Gearing</strong></p>

<p>Spread bet trading also gives you the opportunity to trade in sizes much smaller than those usually available in the underlying market. In a similar sense you may also beneift from an opportunity to trade in larger positions than are normally permitted in the underlying market, without the requirement to deposit large sums of money.</p>

<p><strong>Tax Free Profits(1)</strong></p>

<p>All of your spread betting profits are recognised as the winnings of a bet, and are therefore free from Capital Gains and Income Tax.</p>

<p><strong>Tight Spreads</strong></p>

<p>At Tradefair Spreads our mission is to provide value for money coupled with a top quality service. You'll find our spreads quotes far better value than most of our competitors. In some cases, you will find that our spreads are extremely well positioned competitively, in relation to the underlying, live market quotes. For example, our Daily Rolling FTSE spread is just 1 point and our Daily Rolling Sterling/Dollar quote is just 34 points. Compare our spreads to that of our competitors.</p>

<p>(1) For residents of UK & Sweden. Please check your local tax laws. Tax law can change.</p>

<p><strong>Limit your Risk</strong></p>

<p>Spread Trading is a high-risk activity, but at Tradefair Spreads we want you to enjoy the whole spread betting experience. The automated stop-loss facility we can provide is an invaluable tool which encourages you to fully understand and control your risk. However, you must be aware that stop-losses are not guaranteed. Your stop-loss is set according to the available funds in your account up to a maximum computer-generated level. You can alter you stop-loss to suit your individual needs. We also hold an additional 25% of your funds to allow for slippage or a market gap.</p>

<p><strong>Risks</strong></p>

<p>Although you are in a position to make substantial profits from spread betting / trading, if the markets move away from your bet, your losses can also be substantial and although Tradefair has a policy in force of attempting to limit client losses on bets by applying an automatic stop-loss to all of the bets you make, these stops are not guaranteed. As a consequence, if a market gaps, you may lose more than your initial deposit value.</p>

<p><strong>Why Should Spread Trading Interest me?</strong></p>

<p>Spread trading appeals to a wide variety of individuals who want to take advantage of the versatility and great value that spread trading can offer.</p>

<p>Experienced investors use spread betting as an extra trading tool as the spreads we offer rival the prices available in the real market. As an alternative, many investors use spread trading to hedge thier existing share portfolio. For example, if you have some shares which are decreasing in value in the short-term, you could 'sell' the value of the share using a sell (short) bet with Tradefair Spreads and possibly make a profit to counter-balance the decreasing value of your shares.</p>

<p>You don't need to be an experienced investor to spread bet, but you should always (DYOR) do your own research on the products that you wish to trade and be aware of the risks associated with trading in them. Many individuals new to spread trading use technical analysis to guide their investment decision. Tradefair Spreads provide live charts for every product we quote to assist you with your technical analysis.</p>

<p>One of the problems that spread betting companies have is the use of the term 'spread betting', as this gives a false impression to the marketplace.</p>

<p>Spread Betting is in actual fact a highly adaptable trading tool. With a Tradefair Spreads account you can trade in many financial products using just one currency - we offer prices on UK, European and US shares, World Indidces, Commodities and Foreign Exchange. You can bet on the Cash, the Future or the Rolling Daily products - the choice is yours!</p>]]></description>
            <link>http://betting.betfair.com/financials/education/what-are-the-advantages/what-are-the-advantages-210708.html</link>
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            <pubDate>Mon, 21 Jul 2008 11:02:20 +0000</pubDate>
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