Days when you can write out cheques to every firm after a run of bad results. If you are in spread betting, you need to be in it for the long term. Luck, misfortune or a run of poor judgement can mean losing streaks where you forget what it is like to see your account in credit. But the acid test is how far we are up or down in the long term when the bounce of the ball has evened itself out.
Managing your money in spread betting obviously needs considerably more care than with fixed-odds betting. If you back a football team to win with a £100 stake, that is the most you can lose: end of story. If you back the same team to win on the spreads, depending which market you do it with, you can be out of pocket by numerous times your stake. It goes without saying that everyone should only bet with money they can afford to lose.
If you are spread betting with the wife’s housekeeping money or the mortgage, then you are foolish or need help. Because of the nature of spread betting, its regulations are enforced by the Financial Services Authority (FSA), and any debts you owe, unlike with fixed-odds firms, are recoverable by law.