If you have funds to invest then there are a variety of possibilities for making profitable returns. By analysing the chances of making a gain within a specified amount of time, you can calculate the potential of your investments. To invest successfully you should be aware of the risks and make use of available information and analysis on the market you are looking to invest in.
One way of investing your money is through CFDs (contracts for difference). To invest in CFDs, first open an account with any broker. This account allows you to invest in a contract on an underlying asset, and the difference between the opening and closing trade value on the asset is paid out as a profit or a loss to you. To practice your CFD strategy before investing your money, we offer a free CFD trading platform trial for you to try out different tactics.
You may decide you would prefer to invest in the Foreign Exchange Market (Forex). By signing up for a Forex account you can chose from a range of currency pairs to buy and sell. If you buy a currency you can agree to this on a per point basis. For example, if you were to invest in the USD, buying it with GBP, you could agree to a $10 per point basis. Each time that the USD rises in value you would gain $10 per point it rises, but also lose $10 per point the market moves against you. Therefore it is worth keeping in mind that this could result in a loss greater than your original investment. It is useful to check out our information sheets on the unit risk of the currencies before committing your funds.
Alternatively, you may wish to invest in the FTSE 100. We can help you do this through our spread betting accounts. Like trading on the Forex, you commit to a ‘per point’ agreement. You base your trade on whether you think a stock will rise or fall in value. For example, if you were to invest funds on the agreement that a stock will rise in value, on a £10 per point basis, you would gain £10 for each point the market rises. You would, however, lose £10 for each point the market fell. Our free spread betting demo can help you practice spread betting before deciding to invest. Our spread betting guide also provides further information.
Deciding to invest your money is a great way to create opportunities for making more money. However, the risks in all markets means it pays to be informed on your investments.
Risk warning: Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.