Spread Bets Online, Betting Advice, News
What is Spread Betting?
Financial spread bets are legally enforceable wagers between betters and bookmakers who are regulated by the FSA. Winnings are not liable for CGT and there is no dealing commission.
HOW SPREAD-BETTING WORKS
The standard list of 'wagerable' instruments includes daily closing levels for individual shares and market indices as well as futures or options in equities, indices, bonds, interest rates, currencies and commodities.
Spread betting is a way of trading on the value of something without actually owning it. In other words it’s a way of trading on whether the value of something, the stock market index, for example, or the price of gold or the value of the euro will go up or down without owning any shares, gold or euros. In the UK profits from spread betting are free from capital gains tax and income tax.
The word spreA bookmaker quotes a 'spread' based on the current market price and the spread on the underlying instrument, the cost of hedging the bet, pending dividends and corporate actions as well as the spreads quoted by rival bookmakers. The spread changes as the price of the instrument alters in the underlying market.ad in the name refers to the sell and buy price quoted by a spread betting company. This price is calculated around the existing (or the estimated future) market price of a financial product. To make a bet the participant, or trader, must decide which way the value will move and then decide what stake to place and this is usually done in points rather than in currency in order to avoid the added uncertainty of currency fluctuations.