Spread betting is a very popular form of derivatives trading. From a very general perspective, this method allows an investor to profit in situations when the price of an asset either rises or falls. This primarily depends upon whether the individual goes long or short. Those who go long purchase an asset and accrue a profit when the price of this asset rises. Going short (selling) will generate income if the price of the asset falls. As spread bets make use of margins, the investor will only need to allocate a small portion of the total price of the position. Thus, there is an opportunity to enjoy massive profits while the chances of sustaining sizeable losses are always present. What are some of the aspects which define an efficient platform for spread betting?
By their very nature, the majority of spread bets are very short-term positions. Thus, the platform in question MUST be able to provide accurate pricing data within a real-time scenario. Any lags or downtime can and will dramatically impact one’s position in a matter of seconds. All software should therefore be streamlined and able to meet streaming demands whenever they are required.
A User-Friendly Interface
Even the most efficient software will prove of little use if it is not intuitive and highly adaptable to the needs of the investor in question. Unfortunately, this is often not the case in the world of online trading. Users must therefore seek out only the best in the business. All of the most vital information needs to be displayed within a clearly readable centralised dashboard. Charts and data should be easy to interpret. Should a position need to be executed, the user must be able to do so in a matter of seconds. These are only a handful of the features that can be found within the proprietary software developed by CMC Markets. Second-best systems will always fall short in these days of electronic trading.
Addressing the Mobile User
The days of the smartphone are now upon us. It is increasingly common for investors to employ these devices when spread betting. Not only will this enable the individual to make snap decisions when the time is right, but remote access guarantees that any movements can be addressed even when away from the home or the office. Companies that are unable to offer mobile-friendly software should be avoided. In fact, this could very well be indicative of an entirely substandard system.
Spread betting involves much more than simply deciding whether to go long or short. On the contrary, success will only arise when the most advanced technical tools can be accessed with the click of a button. Some of the features to recognise are:
- Advanced charting capabilities.
- Price projections.
- The ability to gauge client sentiment.
- Access to the latest industry news.
- Relevant commentaries and opinions from industry professionals.
All of these variables will enable even novice investors to gain valuable insights into the entire spread betting process.
It is therefore no surprise that CMC Markets has incorporated these and other possibilities into their system. Spread betters who desire a substantial edge should therefore take a look at what this platform has to offer.