The stock market offers incredible opportunities for all types of investor, both amateur and pro. However, the complications of purchasing stocks and shares can be daunting, or simply impractical, even for experienced investors.

Spread betting offers a viable alternative, providing an easy way to access the market regardless of the economic outlook. With the ability to go long and short, there are endless advantages to spread betting which aren’t available to more complex transactions such as stock acquisition.

Here’s a closer look at spread betting, and why it is worth considering for every portfolio.

Diverse and Flexible

 Although it’s possible to invest in any market or sector, it’s always advisable to stick to what you know. Having in-depth knowledge and information about an industry can give you valuable insight into how the market is likely to perform. There is where spread betting can be advantageous, as it can be used across every industry.

How spread betting can be applied to different kinds of markets is one of its greatest strengths. You can spread bet on shares, indices, commodities or forex. The choice is yours. Open different positions and switch trades as market conditions move; spread betting is flexible enough to allow you to follow your instincts. The bottom line is, you should always strive to get more knowledge on what spread betting actually is, in order to maximise its full potential.

Go Short or Long

 Finding stocks and shares which are going to increase in value can be extremely challenging in an economic downturn. With many sectors wobbling, it can be difficult to find potential value, especially in the short term.

Spread betting gives you the opportunity to go short or long on any trade. It means that even if the market is falling, you can still profit if you forecast correctly. This isn’t possible with traditional stock investment. Spread betting allows you to keep trading in the market when it wouldn’t otherwise be possible.

No Complex Ownership Issues

 Share ownership can be complicated, and if you purchase physical stock, you’ll have to deal with practical issues such as storage and disposal. With spread betting you don’t need to worry about any of this.

You’ll never actually own any stocks or shares as spread betting is a type of bet, where you take a gamble on how you think the stock price will move. If you are correct, you collect your winnings, and the trade is closed, with no delays or complications while you deal with the red tape around the sale of shares.

Choose Your Own Trading Timescale

 Depending on the market you enter, and the type of trade, you might want to hold your position for some time or close it quickly. Spread betting is versatile enough to make both types of trading possible.

Some investors execute and close numerous spread bets in a single day, taking advantage of short term volatility in the market. Others prefer to hold trades for longer, closing out positions once a quarter, or longer.

What you choose to do is entirely your choice. Spread betting can be used to add diversity to your portfolio in the way that’s right for your level of risk and investment.