FAQ’s
What is spread betting?
Spread betting is any of various types of wagering on the outcome of an event, where the pay-off is based on the accuracy of the wager, rather than a simple “win or lose” outcome, which is known as money-line betting. A spread is a range of outcomes, and the bet is whether the outcome will be above or below the spread. Spread betting has been a major growth market in the UK in recent years, with the number of gamblers heading towards one million. As with all gambling, however, spread betting carries a high level of risk. In the UK, spread betting is regulated by the Financial Services Authority rather than the Gambling Commission.
Where can I spread bet?
Most spread betters will find the spread betting they wish to use from online searches.
Why Spread bet instead of a normal win or loose wager?
Once you have learnt how to bet, feel comfortable and totally understand spread betting, you can bet on losers or down turns as well as winners or upturns. You can win a lot more money for smaller wagers, but beware you can also loose more money too.
How it works?
In financial spread betting the spread-betting company will quote a bid (selling) and offer (buying) price for the FTSE 100 index, say 5,016 and 5,018. The difference between these prices is the spread. If you think that the index will rise, you might “buy” at £10 a point at 5,018. If you allow your bet to run until the market’s close and the FTSE rises to 5,053, your profit will be the difference between the closing price of 5,053 and the opening price you were quoted (5,018) times £10, giving a total of £350. If you wanted to bet that the market will fall, you would “sell” at 5,016, hoping that it would drop below this level
What kind of spread betting (Financial or sports) should I do?
That depends on what sector or market you understand. If you love sports and have no idea about stocks and shares, then I would stick to sports spread betting. If how ever the opposite is true then betting on financial spreads may be a better option for you.
Where do I bet?
Directly with any of the spread betting companies listed on this site. If you sign up you will also be sent news letters with the deals of the moment.
Can I have a practice run?
Most companies will allow you to practice first using an online trading simulator. IG Index (www.igindex.co.uk) and Cantor Index (www.cantorindex.co.uk) are the biggest players.
How much should I bet?
Only bet what you can afford to loose.
Is there a minimum or maximum bet I can make.
Usually no but again only bet what you can afford to lose.
How much can I loose?
That’s up to you, so Set up a “stop-loss” limit, which will close your trade at a set level if the price moves against you.
Can I loose a lot of money?
Yes, so limit the amount of money you spend and set limits.
How do I pay for my bets?
You pay by transferring money from your bank account to that of the spread betting company.
Is spread betting legal?
Simply, yes.
Do I pay tax on my winnings?
As spread-betting is gambling, all profits are free of capital gains tax — that’s if you make any profits, of course.
Why should I sign up to be a member at spread betting.co.uk?
The benefits for signing up will be access to the forum, regular news letters, spread betting companies best deals, tips and of course being part of this fantastic community.
Does spreadbetting.co.uk recommend any spread betting companies?
NO, we do not recommend any specific company, however the companies we list are the larger companies in the spread betting market with respected histories.
Will asking questions on the forum help me?
We would recommend just reading what is been said on the forums, unless you have a specific question or have a better understanding of spread betting
Will you pass my details onto any third party?
No unless you give us permission to do so.
How will I get paid my winnings?
Direct bank transfer
Where can I get help and advice?
We recommend that you talk direct with the spread betting company you have signed up with.
