No, you do not own the underlying asset when trading a spread bet, you are purely speculating on the price change.

You can start trading in Spread betting by submitting an application for a trading account. Once your application is approved, you can trade the product(s) of your choice by searching for them on the platform and executing trades via Spread betting on our web, desktop, or mobile platforms.

You can use spread bets to hedge your other holdings by opening a short position with a spread bet on the same asset you already own. If the market drops, the gain on the spread bet can help offset the loss on your holding.

Spread bets allow trading multiple asset classes such as FX, commodities, shares and indices. You can also take short positions or hedge existing holdings.

Your profit or loss is based on the difference between the price you open and the price you close your Spread bet position at. If the market moves in your favour, you shall profit; if it moves against you, you lose. Any additional costs, such as financing charges are also subtracted from your overall profit or loss on the position.

Spread bets are complex products and are deemed high-risk due to their speculative nature and leverage.

We are a UK-domiciled financial institution and have clients globally. However, regulatory restrictions may apply in certain jurisdictions. Please contact support for further details.

Spread betting is generally tax free in the UK and Ireland as it is considered gambling by HMRC, meaning profits are exempt from capital gains tax. However, if it becomes your primary source of income, income tax may apply. Always consult a tax advisor.

The spread is the difference between the buy and sell price. It’s a built-in cost you pay when opening a spread bet.

Spread bets give you exposure to the following risks:

• Market risk – Spread bet prices mirror the underlying asset, so any unfavourable price movement will reduce the value of your position.

• Leverage risk – Spread bets are leveraged products, meaning you can control a large position with a relatively small deposit. While this amplifies potential gains, it also magnifies losses.

• Market volatility and gapping – Prices may move in sudden jumps in volatile markets.

• Risk of margin call – If equity falls below margin level, positions may be closed automatically.

• Liquidity risk – In illiquid markets, spreads widen and slippage may occur.

The underlying asset refers to the product you are trading, such as Brent crude oil or physical gold.

Speculating for the price to fall on a given market.

A pip is the tradable point in a spread bet. For example, one standard lot of FTSE equals £10 per point movement. If the market moves 5 pips, this equals £50 profit or loss.

Financial spread betting is a leveraged derivative product that allows individuals to speculate on the price movements of financial markets, such as indices, currencies, commodities, Crypto currencies or shares without owning the underlying asset. Clients place a bet on whether the price of a chosen market will rise or fall, and their profit or loss is determined by the accuracy of that prediction and the extent of the market’s movement.

Spread betting can be tax free, Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK. Should you have any questions with regards to your personal tax circumstances you should seek independent professional advice.

Spread betting involves margin and leverage, therefore is a high risk product. It is primarily available to residents of the United Kingdom and Ireland and may not be permitted in other jurisdictions. Please note that Crypto currency trading on spreadbets is not available to retail traders.

The following asset classes are available on spread bets: FX, Indices, Commodities, Equities, treasuries and crypto currencies. Please note Crypto is not available to retail clients.