Personal Finance

Important Tips on Spread Betting

During the course of history, the financial markets in principle the asset derivative sector has always been identified as a complex venture that requires professional traders. As a result, trading in the securities exchange has always been the preserve off hedge funds as well as investment entities. However, ever since the introduction of online trading this notion has changed significantly with numerous individuals taking part in asset derivative trading in an unusual manner. As the prominence of online trading emerged, a number of tricks or tips so to speak have come up over the years, the most employed according to experts is share betting.

According to trading experts, spread betting is described as a process of earning tax-free revenues though prediction of price movements. The difference between spread betting and traditional share trading it based on the fact that with the former you don’t actually buy the physical asset in the form of a currency or a share. In this instance, you earn from predicting and placing a stake on price movements. When you expect the value of a share or asset to surge positively you open a long position, which is a financial term to ‘buy’. Contrariwise, if you expect that a share or asset may be set for a drop you are expected to take a short position, which is another term for ‘sell’.

Spread Betting

For example, if you expect the price of the dollar to go up, you could set a prediction on the dollar movement by staking £5 a point. This would therefore mean you will earn £5 for every point the price of the dollar rises. It should be noted that you are not buying the dollar in this process and it is easy to see that with share betting the revenues are much significant considering the stake determines your earnings and not the actual value of the dollar. Nonetheless, should the dollar fall in value you are bound to lose £5 for every point it does get in the red.

Spread betting also allows you to earn while the markets are falling in value. For instance, if Volkswagen (OP6N) in the markets is £140 and news gets out that the company has been understating their emissions values there is an expectation that OP6N shares would fall. In such an instance, you are allowed place a stake for example £5 for any point below £140. In three weeks if the share price is, £106 then you are liable to earnings of £390 despite the fall in the market value.

Well as explained this is a nifty way of making money without actually buying the assets some of which are highly priced and may be out of reach for a trader. Additionally, as explained, there is the instance where you may predict a rise in a share or commodity and this earns you significant earnings you are allowed to go short if you feel that the upsurge is over. This allows you cash in before any losses; additionally, this tactic can be used to reduce your losses in the instance where predictions are not going your way.

According to CMC Markets spread betting may be considered as an option if you are wanting to start trading. Nonetheless, there are a number of risks you have to consider when share betting suggesting that just as casino betting this is not a suitable venture for everyone. They therefore strongly advise their clients to use their demo account before investing their own hard earned money. Simple tips as you take part in this form of trading;

Spread betting is a short-term venture; it allows you grow your capital as you look to trade into shares and other derivatives that actually accumulate to having assets.

Spread betting is typically held over a short period probably a few days or weeks evidently this means the earnings are limited.

There is not much professional help when it comes to share trading; consequently, you should know there is no insurance or assurances when it comes to share trading.

This sort of trading options requires constant checking in order to make sure you are on the right path.

Personal Finance

7 Ways For Talking To Your Partner About Money

At times it can be quite hard to deal with the money issues while you are in a relationship and if not solved, it can even lead to fights, underfunded saving accounts, and busted budgets. Well, in the worst cases, it can also lead to divorce.

Talking To Your Partner About Money

Here are 7 helpful ways for talking to your partner about money before it gets too late.

Know Your Partner’s Perspective

When you are talking to your partner about money, it is important to be patient and try to understand what your partner is trying to express. Maybe your partner isn’t purposely being difficult. There are chances that he/she may have a different financial understanding and different expectations from you.

Each (spouse) has its own money beliefs about how the things should be made normal. Most of the times, these beliefs are not articulated instead they are acted out. You got into this together and make sure you get out of this together.

Know Each Other’s Financial Goals 

You can learn each other’s financial goals by writing them down in a letter. Discuss your financial past in that letter and how your family dealt with that situation. This will help in learning what both of you think about money. Both of you should sit down and decide as who will be having control over the money or whether both of you should opt for a joint or single bank account. Make sure you have listed your retirement dreams.

Set Rules For Spending

While it is not important that you keep a check on every pound that your partner spends, setting rules for the large purchases does help in preventing impulsive buying of the unnecessary things. Above all, this helps in keeping both of you on the same page. Entirely depending on the budget, set this rule for a mutually agreed amount. All purchases surpassing this set amount should be discussed together.

Listen To Each Other 

If your partner doesn’t feel comfortable in putting £160 a month in savings, make sure you have questioned why? Is it because your partner wants to make the payment for the debt? Or is it that your partner wants to eat more in the fancy restaurants than home? It is important what your partner thinks and find out if you can make a sensible negotiation. Make sure both of you are on the same page in order to finalise a set budget.

Discuss the Mistakes

Let us assume your partner has overspent his/her share of the budget. Avoid blaming your partner; instead find ways to prevent it from happening in the future. Make sure you don’t argue without your partner without knowing the reason, it can really make the things worse.

Following are some ways to stop your partner from overspending –

  • Have a regular money meeting – First and foremost, it is important that both of you are willing to discuss. If you are not discussing, then you are making a mistake. A partner who overspends should know the consequences of his/her behaviour. It is advisable to have a regular meeting date where both of you should discuss the money issues.
  • Set aside some money – Have a separate bank account for all your leisure activities. This account will certainly provide the overspending partner with the financial freedom and this will also help from breaking into your main account. The partner can spend the money without any restriction. Once the account is empty, he/she will have to wait for the payday to spend again.
  • Cut up using credit cards – In case you have opted for envelope system for budgeting, but you have still kept the credit cards, then the temptation of using the credit cards can be irresistible for the obsessive shopaholics. If you really think this is the case with your partner, then make sure get rid of them right away. Financial experts are of the view that spending money can be addictive, especially when you can’t see the money leaving your hands.

Don’t Expect Perfection 

Both you have to realise one thing that you don’t have to agree on everything that you discuss. Remember money management is not about being perfect, instead it is making your best moves to make adjustments as you need to. Both of you must be having unique ideas, you should try and make the most of each other’s strengths and start by working on the things both of you can agree on.

Know When To Seek Assistance

There may be a situation where you may end up asking yourself if you are fiscally compatible? It is important not to wait for too long instead seek professional assistance immediately. Non-profit credit counsellors play an important role here as they help you learn how to budget effectively, how to use the credit, and how you can deal with the debt. If you need any assistance with the communication skills, then you can seek the services of a clinical counsellor.


I hope now you are feeling encouraged to make those extra efforts to talk to your partner about the money. Remember your efforts can result in desired results and does make a great impact on your relationship. Money should never come in between your relationship. There are always ways in which you can sort out the money matters, all you need is to follow the above-discussed methods.