What is spread betting? The rules explained
Published on: 08/10/2021 | Modified on: 25/01/2023
Financial spread betting is a tax-free* form of derivative trading that allows traders to bet on the price movements of financial assets such as stocks, forex and indices.
This article on financial spread betting will guide you towards understanding if it's a suitable trading method for you, so watch the video below and continue reading about what is spread betting in five key points to get started.
- It’s a popular form of short-term derivative trading (only available in the UK and Ireland)
- Bet on both sides of the market through buying (going long) or selling (going short)
- Leverage your access to the markets by depositing a fraction of the full trade value, which can amplify your potential profit or loss equally
- The spread represents the difference between the buy and sell price
- Your stake size is measured by ‘points of movement’ which helps to calculate profit or loss