FBI by the provider rather than the client (tax laws can change). Finally, the tight spreads on offer from CMC Markets mean trades have the potential to become profitable very quickly – call the markets right and the rewards will soon be realised. However you need to keep in mind that the market could move against you.” Bharadia details that the importance of understanding and using risk management tools is instilled in clients from an early stage. “You never know when the market will turn – or just how quickly this will happen – so a stop allows you to get out of a losing position automatically, whilst a limit allows you to realize profits, again without having to watch every last price movement. We offer, free of charge, stops and limits to everyone who trades with us, and we encourage their use on every transaction as it offers something of a safety net.” So, how do you get started? Companies like CMC Markets are keen to provide education to potential investors with robust education programs in place to help. Bharadia adds: “These instruments can look complex to the uninitiated, so a successful trader will need to understand how they work and how to guard against some of the common pitfalls. CMC’s modular training course, Trading IQ, has already won a number of awards including ‘Product of the Year’ by readers of Shares Magazine, and is designed especially to give those new to trading the confidence to place their first trade.” Financial spread betting has clearly come a long way in the last 30 years and it seems likely to continue
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its evolution as the popularity increases. It’s now recognised by the market as a genuine, tax efficient way of investing in a broad range of financial instruments and so long as the demand is there from investors, the product seems set to attract even more interest into the future. Please remember that Spread Betting is a leveraged product and carries a high level of risk to your capital. It is possible to lose more than your initial investment. This product may not be suitable for all investors, therefore ensure you understand the risks involved and seek independent advice if necessary. Visit www.cmcmarkets.co.uk/asiandesk for more details. Kunal Bharadia is a Sales Executive on the Asian Desk at CMC Markets, Visit www.cmcmarkets.co.uk/asiandesk for more details.
Learn more! Free 2 hour seminar to master the basics of trading. 21st May at 6pm at our London office Language support in Gujarati and Hindi – speak to our Asian Desk for details. Visit www.cmcmarkets.co.uk/asiandesk and register now.