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

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.

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.

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

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

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.

Speculating for the price to fall on a given market.

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

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