View more search results. Spread betting gets its name from the spread — or the two prices that are always wrapped around the underlying market price. The costs of any given trade are factored into these two prices known as the offer and the bid , so you will always buy slightly higher than the market price, and sell slightly below it.
If the FTSE is trading at When financial spread betting, you are placing a bet on whether the price of a financial instrument will move above or below the spread. Spread betting enables you to speculate on the movement of a particular asset — like a currency pair, company stock or even an entire index — without actually owning the asset.
It differs from alternatives such as fixed-odds betting, because the size of your profit or loss is based on how much your chosen market moves. When financial spread betting, the outcome you're speculating on is the direction in which the price of a financial instrument will move.
If it moves the way you predict, your profit will grow the further it goes. However, if the market moves against you, your loss will also increase as the price movement becomes greater. Say Apple is trading with a sell price of You anticipate that Apple shares are going to rise in the next few days due to a new product release tomorrow.
After three days, Apple shares have indeed moved in your favour and increased to Once again, excluding any daily funding charges. It is important to understand the risks involved and have suitable risk management strategies in place. Find out more about the benefits of spread betting. Tax law may differ in a jurisdiction other than the UK. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Please ensure you fully understand the risks and take care to manage your exposure.
IG Index supports responsible gambling, for information and advice please visit www. Log in Create account. Risk management Spread betting: IG services Spread betting. What is spread betting? The benefits of spread betting How to spread bet Spread betting examples Is spread betting for me? All trading involves risk. Losses can exceed deposits. Over , clients worldwide. What is the spread? What does spread betting allow you to do? Spread betting on shares example: See more spread betting examples.
You can short the market. You can open a spread bet almost instantly. The thousands of available markets. IG offers spread bets on a huge range of markets, including forex, indices, shares, commodities, interest rates, options, digital s and more, all from one account. We offer round-the-clock dealing on certain markets, meaning that you can open and close positions even if the underlying market is shut.
Instead, the cost to open a position is contained within the spread. Find out more about CFDs vs spread betting. Demo account Create account. You might be interested in How spread betting works Everything you need to know about how spread betting works. A complete explanation of leverage: Is spread betting for me?
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