A spread trade is an agreement between a Client and a Provider to exchange the difference between the open and closing value of the trade. With spread betting, you are simply speculating on the direction of the future price movements in an underlying instrument; you specify an amount you want to bet on each point movement.

Spread Trades are a margined product. You only deposit a fraction of the overall value of the trade (typically 100 times the stake size per point), allowing you to make a much larger potential investment than if you were simply buying e.g. shares. However, losses are magnified in exactly the same way.

In addition to the initial margin required to establish a position, if your position moves against you, you may need to make further deposits. This is because you must meet the full value of running losses as well as maintaining the initial margin.

We offer a comprehensive range of spread bets on individual shares across commodities, indices and currencies. The prices are quoted in sterling.

How do you tell whether it's for you?

• What’s your attitude towards risk? 
  

If you’re usually made wary by the phrase “investments can go down as well as up” then spread betting is probably not for you. If you’re comfortable with high risk investments and have the money to trade with, then spread betting could be an ideal way to trade.

•   Do you have the financial reserves?

Everyone wants to make money and with spread betting , the potential profits can be considerable. But so can the losses. Markets are volatile and can turn against you very quickly, leaving you highly exposed. If you don’t have the money to lose, don’t trade. Sensible traders always make sure they only risk what they can afford to lose.

•  What’s your experience of the markets?

It is important that you understand the dynamics of any instruments you trade via spread betting or CFD trading, some markets move more quickly than others and so profits or losses can accumulate more quickly. Also remember that when trading on lower margin products your total exposure can be much larger.