Spread Betting

Spread betting is a leveraged form of trading that allows traders to speculate on whether a market price will rise or fall.

Instead of buying the underlying asset, you place a bet on its future direction. The cost of entering a position is reflected in the spread—the difference between the buy and sell price. 

If the market moves in your favour, you make a profit; if it moves against you, you take a loss. Because spread betting uses leverage, both profits and losses can be significantly magnified.

In the UK, one key advantage is that profits from spread betting are typically exempt from capital gains tax, though this is subject to individual circumstances and may change.

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