Costs and margins
If you already actively trade the financial markets, spread betting is an alternative way to take advantage of price movements, without having to buy the underlying asset.
If you’re an active forex trader you’ll already benefit from leverage on your forex trades, but by spread betting on forex you'll gain a range of other advantages.
As with any leveraged product, you should be aware that spread betting may not be suitable for everyone as it can result in losses that exceed your initial deposit.
If you already trade stock index futures, spread betting can give you 24-hour access and the potential for tax-free profits.** Use our mobile and tablet apps to deal and track your positions on the go.
Please be aware that spread betting is a leveraged product and losses can exceed your initial deposit.
Using your existing knowledge and approach to researching the stock market, spread betting can be the next step in diversifying your portfolio with stock indices, forex, commodities and more.
Be aware that spread betting is not suitable for everyone as it can result in losses which exceed your initial deposit.
* Excludes MT4, a third-party platform licensed to IG
** Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
|Spread bet DFB||CFD|
15579.5 - 15580.5
1.55795 - 1.55805
Buy £10 a point at 15580.5
Buy 1 contract at 1.55805 (1 contract = £100,000)
|Margin required||One contract is £100,000 and the margin rate is 0.5% = £500|
|What happens next?||GBP/USD climbs over one hundred points.|
|Price||15695.0 - 15696.0||1.5695 - 1.5696|
You sell at 15695
You sell at 1.5695
Gross tax-free* profit = £1145
15695 - 15580.5 = 114.5
Value per point = £10
114.5 x £10 = £1145
Gross profit = $1145
0.01145 is 114.5 pips
114.5 x $10 = $1145
If the market dropped 114.5 points instead:Gross loss = £1145
If the market dropped 114.5 points instead:Gross loss = $1145
To calculate your net profit or loss, you would need to factor in any funding charges. See our detailed example for more information.
Daily funded bets (DFBs) are long-term bets on the cash price of an underlying instrument. DFBs have no expiry date, so we make a cash adjustment to your account to reflect funding charges.
This makes no difference to the price you deal at or your potential profit or loss: it simply makes it easier to track per point movements.
*Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.