If the assumption is that the price will rise, the strategy is to buy and sell higher, referred to as ‘ going long’. It is a legal and feasible alternative to traditional trading, enabling traders to profit from upward or downward price movements of financial instruments without actually owning the underlying instrument.įeatures of spread betting Choice to ‘go long’ or to ‘go short’Īfter receiving the ask and bid prices from the broker, the trader bets on whether the price of the underlying asset will be lower than the bid price ( decrease) or higher than the ask price ( increase). Spread betting, also known as spread trading, refers to a trading strategy that enables traders to speculate on the price movements of numerous financial instruments, such as shares, commodities, indices, and currency pairs. The selling price, also referred to as the asking price or the offer price, is the lowest price a seller is willing to accept to sell a financial instrument. The buy price, also called the bid price, is the highest amount a buyer is willing to pay for a given financial instrument. The spread is the difference between the buy and sell prices of financial instruments, such as securities, commodities, and indices. Best banks for Forex Trading in South Africa.What time the Forex Market opens in South Africa.Forex Traders to Follow on Youtube Forex Trader.
