Spread Betting | IG Index | Stock Indices | FAQs

Here are answers to some of the questions we are most commonly asked about spread betting on stock indices. If you can't find what you're looking for here, please refer to the Dealing Handbook.

What are stock indices?

A stock index is a measurement of the combined value of underlying stocks within a section of the stock market.

There are a number of different types of stock index, including global, national and sector-specific indices. They move higher or lower based on investor reactions to a number of factors, such as a company reporting updates or economic performance announcements. A change in the value of any individual stock in an index will be reflected in a change of the overall value of that index.

We offer a huge range of indices to spread bet on, including the FTSE 100, Wall Street and Japan 225.

Who spread bets on stock indices?

Depending on what they are looking to achieve, people bet on stock index movements in different ways. Traders looking for quick returns will employ short-term strategies, betting on the immediate direction of the market with daily bets, while others will take a longer-term view and bet on the value of the index at sometime further away in the future, often a few months ahead.

Spread betting on indices enables you to take a view on a wider collection of stocks rather than simply focussing on the prospects of an individual company’s shares – an index will never go bust or be subject to a takeover bid and your potential risks and rewards are not tied to just one company’s fortunes.

It’s important when spread betting on stock indices to keep up-to-date with the latest financial news and economic developments, as these factors can often affect how the market moves. IG Index offers a comprehensive package of Market Analysis resources, including free analytical tools, expert commentaries and regular economic news updates.

How does spread betting on stock indices work?

Once you know which index you would like to spread bet on, you simply check our current price quotation and either ‘buy’ at the offer price, or ‘sell’ at the bid price.

You can take a short-term view on a number of stock indices with our Daily bets that are settled against the day’s official closing price for the relevant index. These bets are ideal for taking a position on the immediate direction of prices across a whole market and attract our narrowest dealing spreads.

We also offer bets on a range of contract months that give you flexibility when taking a position on longer-term market moves.

To develop a better understanding of how spread betting on stock indices works, take a look at our detailed examples.

What are the advantages of spread betting on stock indices?

• Tight spreads, including a 2-point Daily FTSE price
• PureDeal platform combines reliability and super-fast execution
• 24-hour trading across a huge variety of indices
• A range of Order types that enable you to manage risk and protect profits
• Access to the latest commentary from our experts to help inform your trading
• A comprehensive real-time charting package, which many of our stock index traders rely upon to help their decision making

Learn more about spread betting with our free online seminars