For many people, spread betting is just a way to make some extra cash. While for others, it is more of a way to consistently earn some income while taking big risks. Gamblers who partake of this, often wager on more precise details as against the typical win or lose options. Typically, there are a set variety of opportunities and the gambler places bets on opportunities that are either lower or higher than the spread. Unlike the typical win or lose gambling, spread betting is riskier with far larger profits or losses. Now, you could sign up with just one spread betting provider, but recent events have shown that more gamblers are using more than one provider. Why is this?
1. Trade Platforms Comparison
Some providers make use of platforms that the clients find very difficult to use. Unfortunately, most clients would rather stick with these difficult platforms than look for those that are easier to use. This has a lot to do with the 2the devil you know is better than the angel you do not "cliche. Using more than one spread betting provider will help you get a feel of the different trading platforms, then enabling you to make up your Mind about which platforms you want to trade on
2. Risk is Less
Using different providers also ensures that the risk is minimized. For instance, you could go for an above spread option with one provider and a below spread option with another. This way, losses are minimized or at least balanced out and profits are made more possible. So, you do not have to lose all the way. The idea is to win some most possibly and lose as little as possible.
3. Execution Delays are Minimized
Imagine placing a bet with a spread betting provider only to find that your order has not been executed and hedged. Some spread betting providers do this for a number of reasons; All of them harmful to the client and profitable to the providers. Execution delays could also be as a result of technical hitch, a failed server and any myriad of problems. However, using different providers ensures that in case your position is not quickly executed with one as a result of any of the hitches mentioned above, it will be with the other. This way, your position will still be hedged and secured no matter what happens.
4. Re-Quote Incidences are Less Common
Some providers are in the habit of making money off their clients. What they do is trade against their clients by re-quoting and tilting the odds in their favor. Sometimes, though, there are valid reasons for re-quotes by spread betting providers and market makers. But this is often a rare occurrence. Re-quoting is likely to affect you more if you are using the services of just one spread betting provider. Using multiple brokers will ensure that you have a less chances of dealing with re-quotes. Choosing multiple spread betting providers may cost more in the short term, but the long term benefits can lead to increased and huge pay-offs.