How does spread betting work?

Spread betting is a tax-efficient way3 of speculating on the price movement of thousands of global financial markets (or instruments). When you spread bet, you take a ‘buy’ or ‘sell’ position based on whether you think the price of an instrument will rise or fall, and make a profit or loss depending on which direction the market moves. The difference between the buy price and sell price is referred to as the spread.

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1 Best Mobile Trading Platform, ADVFN International Financial Awards 2024; No.1 Web Platform, ForexBrokers.com Awards 2023; No.1 Most Currency Pairs, ForexBrokers.com Awards 2023; Best Charting (Germany), Investment Trends Leverage Trading Report 2023; Best Customer Service (Germany), Investment Trends Leverage Trading Report 2023; Best In-House Analysts, Professional Trader Awards 2023; No.1 Platform Technology (UK), ForexBrokers.com Awards 2022; Best CFD Provider (UK), Online Money Awards 2022; Industry Pioneer with "Outstanding" Customer Rating (Germany), Focus Money Test Edition 36/2022, "Very good" Trading Platform (Germany), Deutsches Kundeninstitut (DKI) Survey 2022.
2 Based on over 2 million unique user logins across CMC's trading and investing platforms, including partners, as at November 2025.
3 Tax treatment depends on individual circumstances and may be subject to change in the future.
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