There is one thing above all that you must understand before you start spread betting and that is:
You are not investing by buying real shares in a market. You are BETTING, and you are betting with what, in effect, is a bookmaker!
When you buy or sell anything with a spread betting company YOU DON’T OWN A SINGLE SHARE. You are betting on whether a share price is going to go up or down. And it is so easy. With one click you can be making, or losing, money.
Generally speaking, unlike, say, a normal bookie – which takes your bets on the horses and makes money from you losing – the really good thing about spread betting companies is:
They won’t shut you down if you win.