Financial spread betting works using the world markets such as the FTSE 100, Dow Jones and the Hang Seng and how it will react in a given day. It is easier to explain financial spread betting by example. On any given day you can find out on the web or by placing a call to a spread betting firm to find the "spread" on the FTSE 100. They will give a spread such 6350-6500 (6500 to place a "buy" or "up" bet and 6350 for a "sell" or "down" bet).

There is a new way to bet on the stock market. It is financial spread betting. Many people are asking what is financial spread betting?

People are interested in this new concept is that it allows people to speculate on the movement of the market and make large profits but without the actual initial large out lay of buying shares. Instead of buying shares with this type of investemnt you are betting on individual financial markets form the FTSE to the price of gold.

Financial spread betting is easier to understand than many believe. This simple ten point guide offers you the tools to enter the financial spread betting market with more understanding. It can be applied to currency trading too.

1. Practice makes perfect

If you are a novice then the world of financial spread betting is full of dangers.