Investments

Spread betting & CFDs Investments Institutional

Menu

Contact us

The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

In finance, the spread is the difference in price between the buy (offer) and sell (bid) prices quoted for an asset.

Spread definition

In finance, the spread is the difference in price between the buy (offer) and sell (bid) prices quoted for an asset.

Many brokers, market makers and other providers will quote their prices in the form of a spread. The price to buy an asset in a spread will always be higher than the price to sell it, with the underlying market price sitting between the two.

Spread can also refer to a strategy in options trading that involves combining multiple options with similar features. This is known as an option spread.

Spread charges

When trading products with spreads, the aim is for the asset to move in value beyond the price of the spread. Doing so means that buy trades can be sold for a profit, or sell trades bought for a profit.

The spread is one way in which traders pay to make trades. Some trades will not have a spread but will instead be charged on a commission basis, and some will feature a mixture of the two.

Investing news

Visit our investing news section for the latest news and analysis, and where potential investment opportunities may lie.

A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

IG UK Terms and agreements Privacy About us IG Community Cookies

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA, a SIPP or an IG Smart Portfolio can fall as well as rise, which could mean getting back less than you originally put in. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Spread betting and CFD trading are not permitted within the IG SIPP. Please ensure you fully understand the risks and take care to manage your exposure.

iShares® and BlackRock® are registered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”) and are used under license. Further, BlackRock, Inc. and its affiliates including, but not limited to, BlackRock Investment Management (UK) Limited, are not affiliated with IG Markets Limited and its affiliates. Accordingly, BlackRock makes no representations or warranties regarding the advisability of investing in any product or service offered by IG Markets Limited or any of its affiliates. BlackRock has no obligation or liability in connection with the operation, marketing, trading or sale of any product or service offered by IG Markets Limited or any of its affiliates.