There are many spread betting strategies that can make you money but some are obviously better than others.
Arbitrage
Arbitrage is definitely not for beginners and it requires you to have accounts at several spread betting firms. It is basically a technique where you can make risk free profits from the trades that you make by taking advantage of the difference in prices between the spread betting firms. You need the time to search for these opportunities as they don’t crop up all of the time but when they do they can be quite lucrative.
As an example, Finspreads may have BSkyB trading at 614.3 – 614.7 but Tradefair may be showing 613.9 – 614.1 You can see from that example that you could sell at 614.3 with Tradefair and buy at 61.4.1 with Finspreads and make an instant profit. As mentioned earlier, this technique is really for the more seasoned trader and it helps if you are placing larger amounts of money down, as the profits are often only a couple of pips and it is not really worth the effort if you are placing a couple of pounds per pip.