For those looking to speculate on the markets, there are a number of different options to consider. However, the fragile economic outlook means that some options are unlikely to return a profit. Spreadbetting is one option worth considering as it offers a way to make a gain, regardless of the overall market trend.

Many people will have heard about spread betting and may even have seen the phrase at their local betting shop. But few will realise the marked difference between a spread bet and a fixed odds bet, or appreciate the complexity of entering the market. Both kinds of bet offer the possibility for a substantial return, but spread betting involves taking the risk of losing far more than your initial deposit.

Spread betting stretches across a wide range of markets, including mainstream areas such as sports. However, it is most commonly found in the financial markets where it is used to trade in a number of different arenas. Some of the common options offered by brokers include currencies, metals, commodities, indices, sectors as well as individual shares. Investors can either plump to stick to daily bets or can go for longer term spread bets which roll over each day.

Spread betting is not gambling and requires the investor to be able to accurately read the markets and accurately predict whether the subject price of the trade is likely to increase or drop. Because of the uncertainty surrounding the outcome of a spread bet, experts suggest that risks need to be mitigated with certain risk management tools.

There are a large number of online brokers who offer spread betting and getting started is a simple process. The vast majority provide the facility to register online and with an account taking only a few minutes to create and go live, it is possible to be ready to trade within a very short space of time. Nevertheless it is essential to have a degree of restraint and make sure you are ready to trade before getting started. Taking the time to familiarise yourself with the platform is important and having the patience to wait for the right opportunity to present itself is absolutely vital. Getting impatient and plunging in is unlikely to end in success.

But with so many brokers to pick from, it is important to consider what features are the most important to you before deciding where to register. For example – will you only trade from home or are you likely to want to be able to check your account when you are on the move? It goes without saying that a platform which is easy to use and can be changed to suit your individual preferences is a big plus, but some brokers also provide additional ways to trade.

For investors who are keen to keep a close eye on their account whilst away from home, the City Index spread betting app may be something to take a look at. City Index include both 24 hour trading and live price feeds which make managing your spread bets much easier, even if you need to keep an eye on market movements when away from your PC.

To become profitable in spread betting takes a lot of research and patience and the ability to resist the temptation to go overboard. But whether you use the City Index spread betting app, or opt for a home-based approach, with the right attitude and the willingness to learn, the potential for profit can be great.

Want to find out more about spread betting? Learn how to spreadbet at the City Index website.