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A regular option's return is dependent on not only getting the direction and timing correct but also the magnitude. How much a traditional option returns is based on how far away, in either direction (depending on whether call or put, buying or selling) the price at expiration is from the strike price.
Determining potential returns on traditional options is extremely complex, involves many many variables and requires extensive analysis.
Binary options are much simpler and easier to learn. As the name implies, with binary options there can be only two outcomes: win, or lose. A trader does not need to determine the magnitude of a move with binary options. In addition the return is both fixed, and fully known before you ever make a trade.
Binary options offer many advantages over traditional options. Especially for the novice trader.
As with all financial products there is also always significant risk of loss and you shouldn't speculate with anything you cannot afford to lose.
The difference between spread betting and CFD trading is that spread betting incurs penalties when not periodically and carefully maintained whereas CFD trading virtually has zero risk factors as long as the GDP and RDP numbers are stable and one knows the trend thoroughly.
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What business is CMC Trading involved in?
CMC Trading offers online trading in Foreign Exchange, spread betting and Contract for difference. CMC Trading was founded in 1989 and is a UK based financial derivatives dealer.
Where can one learn how to spread bet?
One can learn how to spread bet through reputable online trading platforms, books on spread betting, online courses, and attending seminars or workshops on the subject. It is important to thoroughly research and understand the risks involved in spread betting before getting started.
What services are offered by CMC markets?
CMC markets offers stockbroking service. The company also offers online trading spread betting, contract for difference, and foreign exchange.
What is spread betting software and where can I find it?
Spread betting software is software where it compares teams with there strong points and weak points against other teams and then makes a point spread for them. You can purchase this software at any electronic store.
Which spread betting broker is best?
As for comparing the spread betting companies it really depends on what you want to trade and over what time period. For instance IG Index are known to have the widest choice and are good for shares etc but Capital Spreads possibly has the tightest spreads, good for short term trading etc .
What is the spread?
The spread is the difference between the "buy" and the "sell" prices of a particular spread betting market (such as equities, indices, currencies and even sports!) For example spread betting company Spreadex may offer a "spread" of 5000-5002 on the UK 100 Daily (aka FTSE 100). You could buy at 5002 if you believe it will go above this level, or you can sell at 5000 if you think it will go below. The spread is effectively how the spread betting company makes its profits. The spread will get wider if you bet on futures or utilise guaranteed stop losses. If you need any more help on the terminology used in spread betting see this glossary of terms provided by Spreadex. http://www.spreadex.com/betting/Financial/financial_spread_betting_glossary.aspx
What is a spread betting forum?
A spread betting forum is a betting forum where you spread your bets around. If you diversify your bets you have a better chance of winning and making money.
What are the services of cityindex co uk?
They feature the services of spread betting and CFD trading, types of trading which involve investment of capital and may yield returns of a higher/lower nature.
Why is financial spread betting occurring in the UK?
The first thing that entices people to do financial spread betting is that your profits can be non-taxable. In the economy of today, this is a major attraction for people. Also, with stock prices down, it is much easier for the average person to be involved in trading.
What is a sports spread used for?
A sports spread is used when bets are being taken on sporting evens. Spread betting gives a gambler the ability to decide if the amount of points given for the spread will be lower or higher than the difference between two team's actual scores.
What are spread betting firms?
They are events in which the outcome depends on the initial investment of the buyer. I recommend not to get involved, because this is a high risk type of wagering event, and the chance of winning is slim.
What is financial spread betting?
Financial spread betting provides leveraged access to trade on the global markets meaning you can speculate on future price movements of world indices, shares, currencies, commodities, interest rates and bonds. If you believe a market's share price will rise, you go long and buy. Should you be correct in your prediction and the market moves in the direction of your trade, you will net a tax free gain in line with each point that market rises. Financial spread betting has a number of advantages over traditional share trading or financial market trading including leveraged trading and the ability to trade on margin
