Spread betting is a financial derivative that allows you to profit from speculating on the price movement of a financial asset without owning the underlying asset.
Place a bet on the direction you think price will go. If your prediction is right you will make a profit and if you are wrong you incur a loss. The magnitude of your profit or loss is determined by how far the price moves away from your initial entry point.
Why do people chose Spread Betting?
Spread betting provides traders with the opportunity to profit from price movements in both directions unlike conventional stock purchasing, in which you can only profit from price rises or dividend.
It is also tax free as financial spread betting is legally considered gambling so no capital gains tax has to be paid on the profits. You get to keep 100% of your winnings