ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

Find a Spread Betting Broker

Spread betting is a form of financial speculation where individuals bet on the price movements of various assets without owning them. Traders can take long positions if they expect prices to rise or short positions if they anticipate prices to fall. It's a high-risk, leveraged trading method popular in the UK and other countries.

Risk Warning

What is Spread Betting?

Spread betting allows you to place bets on whether a market will rise or fall. You can place these bets on many financial markets, including global stock markets and indices, FOREX, commodities, interest rates, futures, options and bonds. Spread betting is a derivative product, which means you do not actually purchase the asset itself, instead you place your wager on the movement of the asset’s price.

If your prediction about whether the asset will go up or down is correct then your profit will be your initial stake multiplied by each point that the market moved in your favour. However, if you are incorrect, you lose the initial stake multiplied by each point the market moved against you.

In other words, the bigger the market move, the bigger your profit – or your loss.

You don’t have to pay capital gains tax or income tax on your profits (although tax treatment depends on individual circumstances and tax laws are subject to change). You also don’t have to pay stamp duty as you do with traditional share purchases. The spread betting company won’t charge you a commission or a fee (they make their profits on bets that you lose).

Spread bets are a leveraged product, which means you can make a relatively small outlay to gain a large position, and if you win this maximises your profits. But if you lose it also maximises your losses.

Spread betting is a very risky kind of trading. As with all kinds of gambling, you should never bet more than you can afford to lose.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

Support: +44 (0) 203 8794 460 | support@advfn.com