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Tim Bennett, deputy editor of MoneyWeek, has offered a range of spread betting tips to help avoid any pitfalls associated with the system, emphasising the need to get to know the markets first.
He believes it is important to be aware of the fundamental differences between spread betting and trading shares - including not getting dividends and the necessity of having a margin in your account for the former - before "diving in".
"Currency betters, for example, need to get familiar with their chosen exchange rate pair and get to know what moves the rate, how far and when. A jack-of-all-trades approach is unwise," he added.
This follows the launch of a new spread-betting platform by CMC markets, which chairman Peter Cruddas believes will "revolutionise" the way the markets are traded.
Posted by Sara Secker
