What is Spread Betting

what is spread betting

Financial spread betting is a type of trading product that allows you to trade on the price movements of the financial markets irrespective of whether they are rising or falling. If you place a buy bet (go long), your profits will increase with any increase in that price. If you place a sell bet (go short), your profits will increase in line with any fall. Similarly, if you go long on the price and the underlying stock price falls, you will incur losses. For every point an instrument moves in your favour, you gain multiples of your stake. For every point it moves against you, you lose multiples of your stake.

For each spread bet you place, you only need to deposit a small percentage of the full value of your position as margin. The margin rates start from 0.25% of the position value, depending on the market you bet on, so the potential for profits or losses can be considerably higher than in traditional trading.

With DF Markets you can spread bet on a wide range of markets - from Indices such as the UK100 or US30 to individual equities from over 15 countries. You can also bet on over 68 FX markets and a range of commodities such as Oil, Gold and Silver. In total, there are over 1,100 financial markets to choose from. Information on all available markets can be found here.

In the UK, all profits gained from financial spread betting are completely tax free*. All profits are exempt from Capital Gains Tax, Income Tax, and Stamp Duty.

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*Tax laws are subject to change and may depend on the individual circumstances. Tax laws may also differ in jurisdictions other than the UK.

Disclaimer: Views expressed here are for education purposes and are not the views of Delta Financial Markets or its employees. These views are not personal recommendations or advice. You may wish to seek independent advice before entering into transactions.