What is Spread Betting?

Unlike other forms of online trading, Spread Betting doesn’t involve trading lots of currency or a number of shares. Instead, you buy or sell a certain amount of the instrument you are trading. This is referred to as your stake. Your profit or loss is then determined by multiplying your stake by the number of points the market moves.

When Spread Betting, if you think the asset price will rise, you place a buy order (or go long). If you think the price will fall, you place a sell order (or go short). The spread is the difference between the buy and the sell price.