CFDs are a leverage product and can involve a significant risk of loss. Trading CFDs may not be suitable for all, therefore you should ensure that you understand the risks involved and take into account your individual circumstances.

What is Spread Betting?

Spread Betting is a flexible and tax-free* way to trade financial instruments including Forex, Shares, Spot Indices, Futures, Spot Metals and Spot Energies. Spread Betting is a form of derivatives trading, which means you aren’t taking ownership of the underlying asset. You open a position based on whether you think the value of an instrument will rise or fall. If the asset price moves in your favour, you profit, if it goes against you, you incur a loss.

What is Spread?

The spread in Spread Betting refers to the difference between the buy (or ask) price and the sell (or bid) price. Unlike CFD trading, Spread Betting doesn’t involve trading lots of currency or a number of shares. Instead, you buy or sell a certain amount of the instrument you are trading, which is referred to as your stake.

Spread Betting is a leveraged product. This means that you can open a larger position without having to put up the full capital. Your profit or loss is then calculated by multiplying your stake by the number of points the market moves.

Trading CFDs and Spread Bets involves significant risk of loss.

The Benefits of Spread Betting

  • Profits are tax-free*

  • No stamp duty to pay

  • No commission

  • Trade on rising and falling markets

  • Open larger market positions using leverage

  • Trade hundreds of financial instruments 24/5

Is Spread Betting Suitable for Me?

As a leveraged financial product, Spread Betting has the potential to be profitable albeit involving a certain amount of risk. As such, Spread Betting may be more suitable for active traders that are:

  • Interested in tax-free* profits
  • Looking for short-term opportunities
  • Interested in diversifying their portfolio
  • Relatively experienced in online trading

*Tax laws are subject to change and depend on individual circumstances.

Trading CFDs and Spread Bets involves significant risk of loss.