I did not have the foggiest idea what spread betting was, never mind spread betting in South Africa. But until I did some extensive research, and where better than the online company itself: ‘Spread Betting South Africa”, it became as clear as day light and very interesting. And trust me, you will love this form of trade, it is awesome.
Spread betting in South Africa enables you to purchase or sell without the market affecting your ability to make money. And the execution of your orders placed via your spread betting (market maker) company is instant.
The entire concept might seem very confusing and difficult right now, by not making sense, but trust me, it’s so easy and once you get it, you won’t forget it, and who knows, might take a risk yourself by investing in spread betting South Africa.
For instance, if you were not using spread betting in South Africa, you would make use of the Johannesburg Stock exchange, and if you suspect your share prices to go up, you’ll buy the share price (in Rands and cents), and if wrong, you would lose money and run at a loss. With Spread betting in South Africa you would ‘spread bet a share’ you placed on every cent (Share Betting terms: cent=point) Therefore, if you choose to give each cent the value of R10, should each point (cent) increase, you will make a profit of R10, and if it drops, you will make a loss of R10.
Your choice of your spread betting’s value is up to you, and can be far less than R10 or much more, it all depends on how much you can afford and the spread betting risk you would want to take.
Here is a nice example: Say the price increases by 40 points, that means you will be making R400 profit is your stake is R10 a point.
If your stake dropped by 50c, then your loss will be R500 if your stake was R10 a point.
Spread betting trade in South Africa is one of the fastest growing forms of trade.