Spread Betting History & Financial Trading Background

 

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History of Spread Betting

England placed restrictions on trading Gold in the late 1970s. Stuart Wheeler was a banker who got around these restrictions. He created spread betting to get around the rules of trading Gold.

He kept his eye on a group of men who determined the prices of Gold. Wheeler would predict the price of Gold for the following week. He would use this information to create spreads on the price of Gold.

Taking this Gold spread, he presented it to his friends for bets. If they felt the price may be higher, they would bet the high price. If they believed the would be lower, they would bet the low number.

Evolution Of Spread Betting

The fever of spread betting began and people couldn't get enough. This idea was shared with more people which increased spread betting. Wheeler's spread betting was in such demand that he started IG Index.

Throughout the 1970s, spread betting was available only on Gold. The demand grew launching more companies in the betting business. By the 1980s, Wheeler saw investors of spread betting getting richer.

Wheeler got the idea to tap into more markets and involve others. There were two problems Wheeler faced - innovation and technology. At this time, betting had moved from Gold to many other markets.

Unfortunately, the public was not familiar with this type of trading. They were more comfortable with investing in the traditional stocks. The second problem Wheeler faced was the lack of technology.

Technology was needed to share betting information amongst traders. This technology was necessary for investors to see real time spreads.

Role Of Internet In Spread Betting Industry

The Internet in the 1990s was the answer to Wheeler's problems. The Internet allowed spread betting companies to see current spreads. It also allowed investors to see and track their spread bets.

High speed Internet became a fast way to market spread betting. Spread betting caught on and soon the general public was involved. This demand increased the demand for betting in other areas as well.

Soon spread betting was available for sports, bonds, and much more. Spread betting was on a steady climb and more betting companies grew. These betting firms are mainly in the UK, but some are in Europe.

Earnings on betting are not dependant on increasing stock prices. The popularity of spread betting has increased because of this.  It is predicted this trend will continue as many start to spread bet.

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