Everyone wants to make extra money these days, and for good reason. For one thing, this generation of young people has not been blessed with the economic options their parents and grandparents enjoyed. As such, many are saddled with student loans, even though their careers never really materialized. For people like this, a living might need to be cobbled together from several different sources, even if you have a full time job already.
At this point in articles like this, the author usually starts writing about side hustles. This post won’t be different exactly, but we won’t be talking about starting a new Etsy business, or learning how to be a freelance writer. We’re going to talk about how people without a lot of money can use spread betting to enter the world of finance and investment without tremendous startup capital.
If you haven’t heard about spread betting, you will sooner or later. It’s one of the fastest growing investment forms in the market, and it’s driven by the speed and communicability of information on the internet. It’s also gaining traction because it doesn’t require users to spend a lot of money to begin. Spread betting brokers like ETX Capital require small initial deposits for new users to start making contracts about stocks, indices, commodities, Forex, and more. Here’s how it works.
Let’s say you are interested in Tesla, the electric car and energy company. You understand that the stock price has been going through the roof at the moment, but you are skeptical about the company’s valuation because they have so much debt and haven’t actually sold many cars. You think that perhaps the company’s valuation is based more on hysteria than on actual fundamental strength, so you think that a month from now, the TSLA stock will have lost value from its present position.
When you put your money into your ETX Capital account, you’ll have the option to create a month long contract that can make you money for exactly that estimation. You’ll lock in exactly how much money you want to risk. A month later, if the price has indeed fallen, you’ll get earnings based on how far the price dropped.
If you become an expert in Tesla (or any of the other financial entities that ETX allows you to put money on), you may be able to leverage your knowledge over and over, constantly staying ahead of the marketplace, which often makes valuations on feelings, not knowledge or analysis.
Spread betting is an excellent way to make money when you’re not at work because of several factors. 1) It’s portable and works on many devices. Even if you’re just traveling with your smartphone, you’ll be able to make bets and keep track of your ongoing contracts. It’s a great way to fill a coffee break, or to give you something to do that’s profitable on a quiet evening. 2) Spread betting contracts can resolve quickly, if you so choose. This will allow you to turn it into a serious second income if your insights give you successful contracts often enough.
The knowledge you learn about the financial world through spread betting will give you better insights about all kinds of investment for the rest of your life, even outside of the world of spread betting. It’s a great way to become more knowledgeable about how finance and investment works, even if you don’t have experience in this world now or a lot of capital to begin. Accounts are free to open, and you can go at your own pace from there. We hope that your experience with this exciting financial activity is profitable and fun!