What is spread betting?
Spread betting allows you to take a position on whether you think a market will rise or fall, without having to buy the underlying asset.
- Importantly, spread betting is a leveraged product. This means you only have to put down a small deposit for a much larger market exposure.
- Betting using leverage means there are significant benefits and risks: your investment capital can go further, but you can also lose more than your initial deposit.
Spread betting is flexible as it's possible to take short positions and deal on over 10,000 markets. However, it is important to understand the risks involved and have suitable risk management strategies in place.
With spread betting you are betting on the financial markets, not trading them directly. This means any potential profits are tax-free*.