Progressive Trading

Progressive Trading in its purest form, is defined as the purchase of securities on one market for immediate resale on another market in order to profit from a price discrepancy.

This results in immediate risk-free profit.For example, if a security's price on the New York Stock Exchange (NYSE) is trading out of sync with its corresponding futures contract on Chicago's Stock Exchange, a trader could simultaneously sell (short) the more expensive of the two and buy the other, thus profiting on the difference.Progressive Trading uses a banking technique known as “Risk Limitation Technology” or more commonly known as RLT. [Citation
title = Progressive Trading Pitfalls
url=http://www.progressivetradinginfo.com/pitfalls.htm
accessdate = 2008-04-04]

Progressive Trading has been designed to be used on an array of Financial Markets, namely The Foreign Exchange Market or better known as “Forex”, and while trading between International Stock Market Exchanges.Progressive Trading and RLT has also been used with great success when trading with multiple bookmakers on all possible outcomes of a sporting event. The advantage to this Market (bookmakers) over other Financial Markets is the fact that all revenue generated is tax exempt.

Tax Exemptions

Infobox Prime Minister
honorific-prefix = The Rt Hon
name = Gordon Brown
honorific-suffix = MP
caption = Gordon Brown in 2001 as Chancellor of the ExchequerProgressive Trading first came to the attention of Traders in the Financial Sector of the United Kingdom in 2001 when, then Chancellor of the Exchequer and now Prime Minister, Mr. Gordon Brown announced in the 2001 Budget that the current Tax on betting stakes would be replaced with a tax on bookmakers’ gross profits. [Citation
last = Brown
first = Gordon
title = HM Treasury
url=http://www.hm-treasury.gov.uk./newsroom_and_speeches/press/2001/press_106_01.cfm
accessdate = 2008-04-04]

Financial Secretary to the Treasury, Mr. Paul Boateng, said:

"Today sees the start of a new era for betting in Britain. Tax-free betting is great news for punters, but the benefits go much wider than that. These reforms will allow Britain's betting industry to become a world-leader in the international betting market." [Citation
last = Boateng
first = Paul
title = HM Treasury
url=http://www.hm-treasury.gov.uk./newsroom_and_speeches/press/2001/press_106_01.cfm
accessdate = 2008-04-04]

Progressive Trading is not as popular in the United States as traders are liable for Tax on their profits, However it is still a highly used technique because of the risk-free side of this style of Trading.

The Internal Revenue Service says:

"Gambling winnings are fully taxable and must be reported on your tax return." [Citation
title = Internal Revenue Service
url=http://www.irs.gov/taxtopics/tc419.html
accessdate = 2008-04-04]

Computer Software

There are several companies who develop Software for the Progressive Trading finance sector.

“Computer boffins have found a way, using RLT (Risk Limitation Technology, a technology pioneered by the Banking and Insurance industries) to evaluate, the Bookmakers odds and difference of opinion, in milliseconds (a lot quicker than my aged brain could ever dream of doing)”. [Citation
title = Progressive Trading Information
url=http://www.progressivetradinginfo.com/pitfalls.htm
accessdate = 2008-04-04]

References