What’s Holding Back the Spread Betting Industry
Many people are desperate and want to get some extra money no matter what. If you fancy the idea of making more money in a fun way, too, you should definitely try spreading bets, which are fun and profitable, too, as long as you are willing to take chances, but also listen to those who are good at them and have done this for a long time.
If you are a bettor all the way and you want to try something new, spread bets are definitely recommended in your case. This kind of bets has gained a lot of terrain in this industry and has become available through all kinds of online spread betting companies. Usually, this kind of betting is an over/under kind of bet, but it varies the total losses or wins depending on the accuracy of your bet. In other words, the closer the result to your spread, the better for you.
Let us take an example – a football match between Arsenal and Chelsea. According to the spread betting company, the first goal will be scored in the 36th minute, the spread being the 35th – 37th minute. A bettor assumes that the first goal will be scored before the 35th minute and another bettor assumes that the goal will be scored after the 37th minute. If the first goal of the match is scored in the 25th minute, the first bettor wins ten times the value and the second bettor loses twelve times the value.
What is good to know with this kind of betting is that you can make a lot of money on a single match, but you can also lose huge amounts of money in no time, which is why you should always get the help you are offered, this being the only way to learn how to avoid losing money in no time.
Now that bets have gained so much popularity among people all over the world, we are trying to get our new website popular among these people, too. In fact, our website is very useful for all bettors who are at the beginning and who want to learn how to make money in time.
Spread betting may have an image problem that is holding back its acceptance among ordinary investors. People may perceive spread betting for just City high flyers, or they may view it, because it’s got the word ‘betting’, as just gambling.
I definitely believe that spread betting had an image problem in the past. I think a lot of it is probably due to their own success. So out of the cupboard emerged all these stories about horrible losses and the press seems far more focused on the bad stories than the good stories. I rarely hear success stories on newspapers; journalists would much rather hear about anyone who lost a bucket of money and is willing to tell their story.
Sometimes I hear of people saying that they are interested in shares and they are interested in CFDs but aren’t interested in spread bets at all. And if you ask them why, they don’t have a real explanation. I think there’s just an association with the gambling side. Maybe it is because the guys that drove the industry started out offering spread bets and/or CFDs but no share dealing, resulting in separate investor groups that have grown up over the past five to 10 years.
There isn’t really that much jargon with spread betting, but I think investors get frightened away by some of the ideas of margin and leverage; and I think things are much better today.
The rolling cash products did much to help change the image problem as these are transparent products that client can understand as the prices are based on the cash market. This is because people that are used to trading shares are looking for simplicity in a financial product that gives them the assurance that they’re trading on a price that they understand.
Most spread betting companies have now joined suit by offering a cash type product and I can say around 95% of all trades executed on the spread bet desks are Rolling Cash bets.
So to conclude I feel that although the industry still has to work on shedding its stigma things are improving as spread betting providers such as CMC Markets continually improve their offering through innovation.
If one looks at the broadsheets, tabloids, magazines and educational institutions, there’s a growing acceptance of a spread bet as a derivative product in its own right and it needs to be addressed as part of the family of contracts for difference. In a short period of time, it will gain the credence it deserves.