How to Cheaply Trade the Worlds Stock Markets

For a long time now online trading and forex trading has been available solely to the very rich and the professionals. To even put on a very small position in any market usually has a very high cost of margin associated with it. So while the small investor may have a very good view of the markets or a strong feeling of which way they are likely to move the initial cost of putting on the position can be far too much for you to actually get involved in the markets. This is up until now. These days there are many different ways to participate in the stock markets, the currency markets, and basically any market you wish to enter.These days you can take out a spread bet with much less initial outlay. You can name your own price for how much you are willing to risk per point, you can bet on the market rising or falling, and you can even set guaranteed stop losses to help put a limit on the losses you could incur. You can start betting with an initial deposit of as little as £100 and put on a single trade for as little as 50 pence and most spread betting companies offer you trading with no commissions or fees. The best news about spread betting is that they are currently free from UK capital gains and income tax (tax laws are subject to change). If you are a non-UK resident you should be aware that spread betting may subject you to capital gains or income tax or any other tax or duty in your country of residence. As an example, Say the FTSE March contract is currently trading at 5810 – 5812, this means that I can buy in to this market at 5812 and sell in to this market at 5810. So if I think the FTSE March contract is going to trade higher I can buy in to the contract at 5812 (the market buy price) at say, £1 per point movement. (This price per point is predetermined from the amount of deposit you put down and the allowable bet size range the spread trading company offers.)If a few days later the FTSE March contract is trading at 5850-5852 you can sell out your position at 5850 (which is the market sell price). This would make a profit of 5850-5812 x £1 per point = £38 on that position.If however the FTSE March contract price goes down to 5780-5782, and you want to get out, you will sell out your position at 5780(the market buy price). This would result in a loss of 5812-5780 x £1 per point = £32 loss on the position.This ability to trade in the markets of the world has never been available to us before at such a low price but now you can really get involved. It is important to remember that you can lose much more than your initial outlay if you do now properly use a stop loss with your trading orders but spread betting can also give you a much cheaper way of trading in the world markets.
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