Learn About Spread Betting

Spread betting can be a daunting concept to understand and it is essential to know the facts before placing your first bet.

Here you'll find spread betting explained in simple terms, including an introduction to internet spread betting and the basics of risk management. Or for a full introduction, try our TradeSense education programme.

What is spread betting?

Spread betting is the flexible and tax-efficient way to back your judgement in the financial markets.

You can go long or short of our huge range of markets to profit from rising or falling prices. You simply 'buy' if you think that the price is set to rise, or 'sell' if you think it will drop.

The degree to which you are correct dictates how much you win or lose. In simple terms: the more a price moves in your favour, the more money you make; the more the price moves against you, the more money you lose. And with Controlled Risk betting you can cap potential losses without putting a ceiling on your profit.

See an example of how spread betting works using the FTSE 100.

Why spread bet?

Spread betting is versatile, quick and easy. You can trade a number of different financial products on one account and our deal sizes are flexible so you can bet in amounts which feel comfortable to you.

All your profits are absolutely free from UK capital gains tax.* And there is no commission to pay when you open or close your bet. The only charge is our dealing spread.

Remember that spread betting is a leveraged product and can result in losses that exceed your initial deposit. Spread betting may not be suitable for everyone, so please ensure that you fully understand the risks involved.

*Tax law can, of course, be changed or may differ if you pay tax in a jurisdiction other than the UK.