What is Spread Betting? (from finspreads.com site)
In all cases the prediction, known as the ‘spread’ is represented by two figures, much like a foreign currency quote. With Financial Spreads you can back your judgment, if you think the market will be higher or lower at that closing date. Example :
|18/12/01||VODAFONE – DEC||202||206|
- The first, or lower figure in the spread ’202′, is the one at which you Sell (go low), if you think it will close lower than our prediction.
- The higher, ’206′ is the one you Buy when you think the market will close higher.
When the result of the bet is known, for every point by which you turn out to be right, you win a Multiple of the stake you chose. Conversely, for every point that you turn out to be wrong, you lose a multiple of your stake.
Every market offered expires at a specific date. You can, if you wish, close your trade before this by simply trading the same stake in the opposite direction to which you opened e.g. Buying a market for £10 point is closed by a contra trade of Selling £10. Whether you trade on the phone or Internet all bets are logged instantly against your account. Our quotes vary over the contract period to reflect the movements of the underlying market and forthcoming events so you may be able to close out for a better price than had you just left it to expire.
- City Index – Significant advantages of spread betting with City Index over conventional forms of trading are:
- All profits free of UK Capital Gains Tax*
- Low initial margin requirements
- No commission, brokerage or stamp duty
- Ability to bet on markets going down as well as up
- Instant execution and clear documentation
- Fully Interactive On-line Dealing
- Extended trading hours (24 hours for leading exchanges)
- Improved liquidity
- Daily, weekly and additional monthly contracts available
- Limited risk bets available on certain markets
- Small stake sizes
- All bets can be made in Sterling
- finspreads.com – This site contains comprehensive examples of spread betting in the ‘Betting guide’, Live Prices and a revolutionary Online Trading System. With our state-of-the-art online betting system, you can stake from as much as £500 to 1p, receive instant trade confirmations and monitor all aspects of your account.
- Paddy Power Spread Trading
- Spread Betting Portal – On this portal, you can find the relevant information about the opportunity to trade on the financial market or trade products such as commodities, shares, stocks and more – without actually own any.
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