Tuesday, July 24, 2012

Spread Betting In A Nutshell

Off track betting site built to replace the Gr...
Off track betting site built to replace the Greenwood Raceway (Photo credit: Wikipedia)
Unlike myriad financial transactions where the emphasis is on risk-free investments and mutual profit funds, spread betting is a calculated gamble. Spreadbetting involves a high level of risked wagering where the outcome relies on a series of ‘spread values’ and not on a simple, ‘Profit v/s Loss’. Though spread betting is quite similar to gambling, it is being regulated by the Financial Services Authority in UK on account of the widespread interest in spread-betting.

The purpose of spread betting is to create a relatively high chance of winning for bidders on both the sides of the wager. Instead of a single point spread betting value, there are a series of spread-betting values chosen that will take the pressure of both the favorite and the underdog and create a more even wagering platform for the bookie and betters.

The odds of winning or losing stand at a capricious 50:50 in spread betting and the bookie might at times, pay both parties a certain proportion of the total wager, to profit steadily. However, contrary to the theory, spread betting favors only one side of the wager and bookies are known to change odds for profit.

So much has spread betting gained repute that a special statistics branch of mathematics has been deputed to analyze the risks and monitor the intricate activity of spread-betting.

Spread betting is an extensively high-risk activity and the profits and losses incurred can be unpredictable. It is thus, recommended to bid intelligently with a clear idea of the minutes involved in spread-betting statistics.

Stock Carnival Ecstasy - July 24, 2012

Image representing Advantage Growth Fund as de...
Image via CrunchBase
Welcome to the July 24, 2012 edition of Stock Carnival Ecstasy.In this edition we start with the Wells Fargo Advantage Growth (SGROX), a 5 star Bronze rated mutual fund by Morning Star with $10.4 billion in assets under management, in an article by Habeeb. Carlos Sera discusses Modern Portfolio Theory. Greg Field writes about the Volcker Rule which has a significant impact on the financial world and will change the way people invest. And finally we have the Archivist on using Covered Calls for regular returns. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back soon.

Alex Fennings
presents How do you Buy Stocks Online? Learn all there is to know! | The Forex Base posted at The Forex Base, saying, "Learn all the information you need to effectively trade stock online and turn a profit"

other

Dr. Dean presents Dementia And Your Money posted at Dr. Dean's TheMillionaireNurse.com Blog, saying, "Does your financial portfolio guard against the risk of decreased mental capacity as you age? Mental decline can happen even if you take steps to avoid it."

stocks

Habeeb presents Wells Fargo Advantage Growth fund (SGROX) posted at Dividend Paying Mutual Funds, saying, "Wells Fargo Advantage Growth (SGROX) is a 5 star Bronze rated mutual fund by Morning Star with $10.4 billion in assets under management. The fund seeks long term capital growth by investing primarily in large cap companies with robust earnings and intrinsic value that is higher than what the market assigns it. The fund’s team conducts a bottom-up analysis on each company’s market capitalization to find the best investment opportunities in the market. If you had invested $10,000 in this fund in July 1st, 2002, your portfolio would be worth $26,354 as of July 1st, 2012"

Aaron
presents A 15 Year History of Wall Street – Part 1 posted at Outsider Trading, saying, "bailout, Business, Cartoon, Economics, Finance, Housing Bubble, Investing, Stock Market, Wall Street"

Habeeb
presents Vanguard Dividend Growth (VDIGX) Mutual Fund posted at Dividend Paying Mutual Funds, saying, "Vanguard Dividend Growth (VDIGX) has $10.5 billion in assets under management and is rated 5 star by Morning Star. Just as the name implies, Vanguard Dividend Growth invests in large cap high-quality companies that have the ability and commitment to increase their dividends over time. Almost 91% of the fund’s assets are fully invested in US equities so one of the risks mentioned on the prospectus is this full exposure to equities. If you had invested $10,000 in this fund on July 18th, 2002, your portfolio would be worth $21,674 including re-invested dividends and capital gains."

The Forex Base
presents How do you Buy Stocks Online? Learn all there is to know! | The Forex Base posted at The Forex Base, saying, "Learning about online stock trading can be laborious: Our free website provides lots of information for you to get started and to make you the learning process as easy as possible"

tips

Habeeb presents Yacktman Mutual Fund (YACKX) posted at Dividend Paying Mutual Funds, saying, "The Yacktman fund has $7.4 billion in assets under management and is a Gold 5 star rated fund by Morning Star. 86% of the fund’s assets are invested in large cap blue chip American companies and 12% is held in cash to take advantage of market buying opportunities. If you had invested $10,000 in this fund in 06/24/2002, your portfolio would be worth $26,921 as of 06/24/2012."

Carlos Sera
presents An Alto Mar Tale posted at Financial Tales, saying, "As I have said countless times, Modern Portfolio Theory and standard deviation treat risk as though a person would be equally happy going from poverty to wealth as from wealth to poverty."

Theresa Torres
presents Four Ways Entrepreneurs Can Use Loyal Customers to Bring in New Customers posted at Entrepreneurship in a Box, saying, "Loyal customers naturally bring in new customers all on their own in the form of family members and friends. But if you want to specifically make it happen, here are four ways you can focus on."

tutorial

Greg Field presents The Volcker Rule Explained posted at NerdWallet Blog - Credit Card Watch, saying, "Here is a very informative and concise break-down of the Volcker Rule which has a significant impact on the financial world and will change the way people invest. Enjoy!"

The Archivist
presents Using Covered Calls to Generate Regular Returns | The Market Archive posted at The Market Archive, saying, "If you have your wealth in very safe stocks that appreciate exceptionally slowly, then writing covered calls can be a great way to skim some profit while you wait. Another bonus if you use a conservative dividend investment strategy is that you can write covered calls and still collect your dividends, and get an extra cash payment."

That concludes this edition. Submit your blog article to the next edition of stock carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
Share |

Technorati tags: , .

Search This Blog

Infolinks In Text Ads