Spread Bets:

Bets placed in a system where the bookmaker predicts a range of likely outcomes for an event or on aspects of an event with more winnings for the more accurate bet and more lost for a less accurate bet.

What is spread betting?

Spread betting is a flexible way to trade on price movements in financial markets, whether equities, indices, currencies or commodities. If you go long on the price, your profits will rise in line with any increase in that price. If you go short, your profits will rise in line with any fall. Similarly if you go long on the price and the underlying stock price falls, you will incur losses.

As a margined product, spread betting only requires you to deposit a small percentage of the full value of your position.  This means that the potential for profits, or losses, from an initial capital outlay is significantly higher than in traditional trading. The margin required is typically between 10 and 20 per cent of the total value of your position, depending on the market. Details of our markets can be found in the on-line Market Information icons on the Trading Platform.

Spread bets tax benefits

Spread betting is exempt from both UK stamp duty and UK Capital Gains Tax.

Spread bet risks

Spread betting has the potential for far greater profits or losses than you would be likely to incur in traditional trading. Before making large commitments, consider your risks thoroughly and never bet more than you can afford.

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"Spread betting can be a hugely profitable enterprise if you know what you are doing. Let us guide you in making the right decision with the right companies."

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