Before you start spread betting or investing in CFDs you should get a basic understanding of the financial markets, what are they there for and what is their purpose?
Whether you are investing in the underlying assets i.e. shares, financial spread betting, or trading CFDs, understanding the Financial markets is relevant to investors for the obvious reason that it is always useful to have some basic understanding of the products that you are purchasing. Some technical spread betting traders may argue against this as once you understand chart patterns, knowledge of the underlying product is arguably deemed not relevant.
However, if you’re new to investing in CFDs or spread betting, we advise you to invest some time learning some of the basics of financial and capital markets and how they interact, before going gung-ho into building up your investment portfolio.
This video provides a good summary of the financial markets that help answer some of the questions above. Once you've tackled this, you can start thinking about which individual stocks or products you'd like to invest in. As always, before investing it is a good idea to go with a company that offers the best spreads, deposits and offers so check our spread betting comparison and CFD comparison tables.
See the video below on the introduction to financial markets.