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How It Works

Why spread trade?

Spread trading is a straightforward way of backing your judgement on price moves on financial markets. And this can all be done from a single account.

3 Reasons to spread trade

You can:

1: Profit from the rise, or fall, in the price of a financial instrument. This could be on a stock index for instance, a currency pair or the price of gold.

2: Trade in an amount that suits your risk appetite, and keep control with our range of risk management tools

3: Have access to a huge range of markets from one single account. This gives you full control of your own trading from our easy-to-use platform.

Why use Trade Nation?

At Trade Nation you have access to a huge range of markets, across all asset classes, from a single trading account. This means you can centralise your trading activity. Being in control of your own trading from our easy to use platform, without having to instruct an intermediary to act on your behalf, is a big advantage for the thousands of spread traders who choose to use this method to access the financial markets.

There are no commissions, nor fees to pay on closed trades. So, the costs are transparent. Spread trading companies make their profit from the difference between the selling and buying prices. This difference is the spread. At Trade Nation our spreads don’t increase when markets get volatile. We offer low fixed spreads which help to keep your dealing costs down and so maximise the returns from your trading.

Additional benefits

You can also tailor the size of your trade to suit your risk appetite - something that isn’t possible when using many other financial products. This is particularly helpful as spread trades are leveraged products. This means you only need to put up a small percentage of the total value of the trade to control all of it. For instance, you may only need to deposit as little as $50 to control $5,000-worth of a particular market. This can help you magnify your profits on a successful trade. However, trading on leverage is risky as losses can also accumulate rapidly.

Be careful

This is why it’s so important to understand the risks involved with spread trading. Successful traders appreciate the risks of using leverage. They also study the markets they are looking to trade and stick to a plan, meaning they carry out careful and disciplined risk and money management. Finally, they never speculate with money they can’t afford to lose.

Read next: Spread trading explained

Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.