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What is financial spread betting?


You can use spread bets to speculate on the price movements of financial assets, such as equities (shares), indices, forex, commodities or interest rates.

A financial spread betting company will offer a spread based around the underlying market price.

Financial spread betting example

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.

Example of Financial Spread Betting

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.

Example of Financial Spread Betting on a share price

You can see further financial spread betting examples on other markets by clicking the images below.

Equities Financial Spread Betting Example  Indices Financial Spread Betting Example  Forex Financial Spread Betting Example  Commodity Financial Spread Betting Example  Interest Rate Financial Spread Betting Example

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.

Spread Betting Advantage - Profit From Rising And Falling Markets  Spread Betting Advantage - Pay No Capital Gains Tax Or Stamp Duty On Profits  Spread Betting Advantage - Leveraged Access To Trade World Markets  Spread Betting Advantage - Trade On The Move  Spread Betting Advantage - Pay No Accountant Or Broker Fees

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.

Spreadex How To Place A Financial Spread Bet Spreadex Helpful Financial Spread Betting Hints For Beginners Spreadex How To Control Your Risk When Spread Betting 

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.

No Charges Or Fees When You Open A Spreadex Account

*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.