Finance Blog

I won a little bit of money, and I didn’t need it for anything, so my brother suggested spread trading.  Spread trading is kind of like gambling on whether a share will go up or down – for every penny the price changes, you can make the amount you ‘bet’.
The illustration I was given when I had it explained to me was a bit difficult to follow at first, but I got it in the end – say, I wanted to buy stocks in ‘I’m going to climb’ company.  Its shares are currently valued at 150p.  When I buy the shares, I bet £1.  So, for every penny they climb, I make a pound.  For every penny they fall, I lose a pound.Ups and downsSo, say the stock went up to £2.  I would make £50.  Had I ‘bet’ £10, I’d have made £500.  Just from one stock.   But, if the stock dropped to a pound, I’d have lost £50/£500.  There’s an additional complication though – you can set stop orders.  So, I would place the Spread trading account UK request to buy the shares, then, crucially, set up a rule that says ‘if it falls below this price, stop’.  I usually set my losses pretty small – five or ten point’s maximum, depending on what amount I was using to ‘bet’.

And that’s it.

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What are Forex and Forex Trading?

You need to start by understanding what Forex is and what Forex Trading is.  Forex is foreign exchange, the prices of country currencies in other countries.   Forex Trading is determining the difference between two currencies.  Learn how to determine the difference between the US Dollar and the Great British Pound or the Euro and the US Dollar.

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