You can use spread bets to speculate on the price movements of financial assets, such as equities
or interest rates
A financial spread betting company will offer a spread based around the underlying market price.
If you think the price will go up, you buy at the top of the spread. If you think it will go down, you sell at the bottom of the spread.
Your profit or loss is determined by the difference between your buy or sell price and the price at which you close your trade, multiplied by your stake size.
Financial spread betting example
You can see how this works in practice via the below example of a financial spread bet on a share price.
You can see further financial spread betting examples
on other markets by clicking the images below.
Advantages of financial spread betting
There are many advantages to financial spread betting over traditional trading methods.
Some of these include; the ability to try and profit from both falling as well as rising share prices, leveraged access to trade on global market prices plus spread betting profits currently being free from capital gains tax or stamp duty*.
Find out more on the benefits of financial spread betting
by clicking the images below.
Other helpful financial spread betting links
We understand that financial spread betting can appear complex at first which is why we have a series of guides and FAQ pages which should answer most queries.
You can also click the images below for helpful links. If you can't find the answers to your questions, feel free to call our traders on 08000 526 570.
What are the costs of spread betting?
The spread quoted by the spread betting firm is effectively the cost of the trade you are placing (i.e. the difference between the buy and sell price on offer).
At Spreadex we provide some of the tightest spreads available on key spread betting markets such as 1 point spreads on the UK 100 Daily, Germany 30 Daily or EUR/USD forex spread betting currency pair during main market hours.
Some trades may incur roll charge costs, which is why it may be beneficial to trade on a futures spread if you are considering keeping a position open for a long period of time.
Although the spreads are wider for futures markets, these trades will not incur a daily rolling charge. You can find out more about our roll charge costs in our Market Information section
for each market.
*Financial spread betting is not currently subject to Capital Gains Tax on any profits you make. But, of course, tax laws may well change in the future. Please also be aware that tax treatment depends upon the individual circumstances of each client.