Why Spread Betting May Be Your Key to a Secondary Income

Spread betting as a secondary income

One of the fastest ways to get out of debt is to start earning more money than you currently are. Of course, this is easier said than done, barring an impressive increment or promotion at work. What you need to do in these circumstances is to find a way to supplement your income, preferably with another job.

Now, there is a good chance that you have already given this idea some thought and put it away. After all, you probably are quite busy with your current job and don’t really have the time or the energy to get started with another. Well, if these are your obstacles, then consider them removed by getting involved with spread betting.

For those who aren’t familiar with this concept, spread betting is speculating whether the value of certain financial markets will appreciate or depreciate within a certain period of time. This form of trading doesn’t require to own any of the assets, simply bet on the direction of the price movement. If you are wondering why this is such a good opportunity for some extra money, here are the reasons:

It Can Be Tax Free

Now, this advantage does depend on where you live. However, if you live in the UK and you are only relying on spread betting as a secondary income, there are some tax advantages. As mentioned, with spread betting, you don’t claim ownership over any of the assets that you are dealing with. The only thing that you are concerned with is the value of the asset. Because of this, you are exempted from the stamp duty, in most situations. On a similar note, it also means that your trade doesn’t fall under the jurisdiction of the Capital Gains tax either. As you can see, when you do make a profit, you get to keep all of it.

There Are Lots of Markets to Choose From

With other forms of trading, it can often feel as though there are limitations to just how many markets that you can decide from. Due to this, you may not feel as though you are trading with an industry that you particularly understand and may feel that you are at a disadvantage. With spread betting, particularly if you decide on a brokerage firm such as ETX Capital, your opportunities are endless. There are thousands and thousands of markets to choose from, ensuring that you will be spoilt for choice.

You Can Choose to Go Long or Short

An enticing advantage with this type of trading is the fact that you can deal with markets that are both rising and falling. Unlike with typical investment options, here you can make money of markets that aren’t doing so well. So, if it seems like a particular company or asset is in a free-fall, you can simply buy the short position. Basically, you are selling that asset. As long as the reduction in value is between your predetermined boundaries, you will be able to make a considerable amount of money.

There is a Way to Minimize Risk

It doesn’t matter what type of investment or trading you are in, there is always a certain amount of risk attached to it. In fact, it is inevitable and something that you have to embrace. Fortunately, with spread betting, there is a way to curb some of the losses you might incur while trading. A stop loss, for one, will make sure that you don’t lose more than a certain amount of money in any one trade. This way, you can avoid depleting your capital in one go.

It is evident that there are numerous benefits associated with spread betting. This is why you should grab hold of this opportunity if you want to make some more money.

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