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Disclaimer: The trading guides provided do not contain and should not be considered to contain any personal investment advice or recommendations. It does not guarantee a better trading performance on your live trading account. You could lose all your initial investment when trading on a live account.
Spread Betting is an alternative method of trading that allows traders to speculate on the movement of various financial markets, such as forex, commodities and indices. Unlike traditional share dealing or investments, spread betting allows you to take positions in instruments without actually owning the asset.
Another reason why Spread Betting has become popular with traders is because you are able to speculate on the movement of market prices. Which means that if you believe that the market will rise or fall you are able to take a position in the direction you believe that the market will go. It is also important to remember that Spread Betting is a leveraged product, meaning that traders may invest a small amount of capital and gain a large market exposure which amplifies the loss or profit.