Spread betting is a way of gambling on market and stock movements, providing you with a tax-efficient* alternative to conventional trading.
If you decide to open a spread betting account with MF Global Markets, you will be given fast and flexible access to the world of spread betting in global markets.
MF Global is listed on the New York Stock Exchange and is one of the biggest futures and options brokers in the world. As a result, you can feel reassured that you are dealing with a quoted company with comprehensive experience across global markets when you open an account with MF Global Markets.
Spread betting presents a number of advantages over traditional investment vehicles, while you can garner further benefits by opening an account with MF Global Markets.
These advantages are:
MF Global Markets provides a high level of service to all of its customers, whether you decide to trade online or over the telephone.
Spread betting allows you to profit whether markets are rising or falling because you can take a long position or a short position on your bet.
If you take a long position, this means that you are betting on the market or stock rising.
Conversely, if you opt for a short position, you are anticipating the market or stock will fall.
The following is a worked example taken from The Times.
A spread betting company, like MF Global Markets, will quote you a bid (selling) and an offer (buying) price, for the FTSE 100, for example.
In this case, the bid price is the lower of the two - 5,016 - while the offer price stands at 5,018.
You may decide that the FTSE 100 will rise, in which case you will opt for a long position. You could "buy" at £10 per point at the offer price of 5,018.
You then decide to allow your bet to run until the close of the market, by which point the FTSE 100 has risen to 5,053. This means that your profit will be the difference between the offer price you "bought" at and the closing price of the market, multiplied by £10.
In this instance, you would make £350 profit.
Conversely, you could decide that the value of the FTSE 100 will drop from the 5,016 bid price that you are quoted.
If this is the case, then you would run a short position. For example, you "sell" at £10 per point of the bid price of 5,016.
As with the previous example, your profit will be calculated based on the difference between the bid price you "sold" at and the closing price of the market, multiplied by £10.
You decide to let your position run until the market closes, when the FTSE 100 has fallen to 5,004. Your profit on this bet would therefore stand at £120.
As a result of being able to run both long and short positions, hedging can be done in a straightforward and cost-effective way**, protecting a long-term stock holding.
Potentially allowing you to lock in profits or limit losses in a falling market.
MF Global Markets can offer some of the most competitive spreads in the industry due to the broad-based and in-depth expertise that the company has accumulated over the years.
The key to successful trading is having a good risk management strategy in place. When you open an account with MF Global Markets, you will have access to a comprehensive range of trading tools.
MF Global Markets operates a flexible system, which enables you to place multiple and multi-dependent orders and gives you the chance to fine-tune your trading strategies, as well as providing you with complete control.
For more information about this area, please visit our Unique Features and Risk Management pages.
MF Global Markets will aim to get you up and running as quickly as possible when you open an account.
You will be given access to all the tools necessary to achieve this.
These include:
For further information about opening a spread betting account with MF Global Markets and getting started, please visit our frequently asked questions page.
*Tax treatment depends on individual circumstances and may be subject to change in future.
**There are no fees, broker's commission or stamp duty to pay
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