Monday, November 4, 2013

What are the disadvantages of spread betting ?

What are the disadvantages of spread betting ?

Of course, the spread betting has some drawbacks , it is important to note . The first of them will come from information provided by the broker operating this service. It is indeed possible that the latter does not provide quotes its products in real time, but delayed , allowing it to generate additional income .

In a second step , it is difficult to get information about this practice in France . Spread betting sport was banned in April 2010, the Department of Budget Whereas information on the potential losses were not clear .

These potential losses are one of the other defects Spread betting , because if you can win big , you can lose more than you bet out. Just a movement contrary to your prediction , and losses can go fast.

Another disadvantage of the system for the applied legislation. If French law allows such a system to finance, it may be that it is not treating it more like a sports bet or a game winning , but as a financial product like any other, and therefore subject to the same restrictions .

The last black point spread betting , involves the deceptively playful aspect of the system . Despite whether it is an oriented "mainstream" approach , it remains more or less trading , in which one can quite apply money management , and finding the same risks as conventional trading. The risk of addiction associated with the game aspect, as well as potential losses, are a product to be handled with care .