Having opened up a spread betting practice account I am, pleasantly, surprised by the amount of money I have already made….
It is of course play money as this is a spread betting practice account. My spread betting provider has bequeathed me with £50 000 worth of freebie credit; I can’t report as to why this figure was chosen. I can say though that I don’t intend to place such an amount in my first live account.
Perhaps it is a subtle way of communicating to soon to be traders that more is indeed better.
So – I have made two trades – one on Standard Chartered and the other on the FTSE 100.
Standard Chartered is one of the more liquid options out there – just look at the price of one share.
I bought Standard Chartered shares at about 2pm yesterday afternoon and there has only been growth since then. By 36 points to be exact.
Now – this is how spread betting works.
Every unit of currency placed on a bet multiplies by the amount of change in the share price.
I bet £100 on Standard Chartered and my 36 point increase means I have gained £3600. Too put it ever so mildly – not bad for a £100 investment.
When entering the game you can either buy or sell – buy if you think the price is to go up or sell if you think it is to go down.
Luckily I bought – if I hadn’t I would be £3600 down as the same gearing mechanism works in the other direction.
In a rising market this is surely an easy game.
To be honest I have had to pinch myself at how easy the money comes in when spread betting goes right – I know there is a catch somewhere along the line; and I am sure it will make itself known in good time. But for today – roll in dear sterling!
The 1 hour working day lies ahead.
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