UK Financial Spread Betting Guide

Financial Spread Betting Explained

Learn about successful financial spread betting strategies explained in the information provided in this guide to arm yourself with useful information before you begin to trade, helping you to become successful in your spread trading and investments.

Whether your interest in global financial markets is stocks, bonds, indices, commodities, forex, or a combination of these, this guide to online spreadbetting can help you to learn as much as possible about the financial markets, their current values, financial betting tips and strategies for how to financial spread bet successfully so that you will consistently reap a profit in the future.
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Financial Spread Betting

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Financial Spread Betting Explained

Uk Financial Spread Betting ExplainedThe concept was originally devised in the UK for sports spread betting but when combined with the vast potential profits offered by the financial markets, investors were very quick to realize that financial betting can prove to be a far more lucrative strategy for anyone that wants to take advantage of it.

Much like buying traditional shares from a stock broker and selling them for a profit, a successful spread trade is based on correctly betting on the rise and fall of the current market prices.

However, it is slightly different in that you do not own the underlying asset on which you are trading. Instead, profits and losses are simply based on the price of the underlying asset, as it rises and falls with the current conditions of the financial markets.

Basically, you are betting on the price movements of the underlying asset of your choice. The UK financial spread betting companies offer price quotes in which a long quote (buy) means your profit is based on the rise in the price, and a short quote (sell) means your profit is based on falling prices.
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A financial spread bet is an easy way of speculating on the rise and fall of prices as it is simply a bet as to which direction you feel the price of a specific asset will go. How much profit or loss you make is based on the actual rise and fall of the market, just as it would if you had purchased the shares through a traditional investment.

Advantages and Risks

Of course, online Financial spread betting is not for everyone but it does have a wide appeal due to its versatility and value. While it is not necessary to be a seasoned investor to participate in this type of financial trading, you do need to research the products you are interested in betting on, and need to know a few things about how the process works.

You also need to be aware that, like any other type of capital investment, there are both advantages and risks to consider. Compare online spreadbetting with traditional investing.

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Some of the Advantages of Spread Betting in the UK

  • Go long or short: Profit from both rises and falls within the market
  • No dealing fees: No brokers means no dealing fees on trades. The spread is the spread betting companies profit margin
  • Tax Free Trading: Exempt from UK capital gains tax and stamp duty
  • Cost effective hedging: Hedge your current portfolio against losses in declining markets
  • Trade on Margin: Maximize profits through leverage
  • Trade world markets from one account: Access to trade worldwide financial markets in a single currency
  • Demo account: Free demo accounts allow you to learn how to financial spread bet successfully without any risk
  • Find out more about the advantages


The major risk associated with a financial spreadbet is the potential for magnified losses due to the leverage and you can lose more than your initial investment. When betting, ensure that you only invest money that you can truly afford to lose. Knowing the ins and outs of the financial markets will help you to make smart trading decisions, and while profits are never guaranteed, knowledge can help you to utilize market information to make decisions that are more likely to result in profits.

Regulation and Availability

In the UK spreadbetting is regulated by the Financial Conduct Authority (FCA). Unfortunately, financial spread betting in America (USA), is still not yet available as it is still considered to be online gambling there.

Next: Financial Betting Explained

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