 Leverage your investment
potential
With spread bets you can increase you exposure to an underlying
investment from a lower initial outlay. For example, a deposit of
£100 might allow you to open a spread bet position equivalent to a
£1,000 equity investment. This leverage is great news if the market
moves in the direction you expect, but it obviously carries a high
degree of risk if the market moves against you.
Tax free profits
As spread betting is not currently subject to UK Capital Gains
Tax or UK stamp duty, any profits you make are not taxable, and any
UK equity trades will not be subject to the usual 0.5% charge on
purchases. Conversely, any losses you make through spread betting
cannot be offset against profits elsewhere as they do not fall
within the UK Capital Gains Tax regime. You should, however,
note that tax laws may change and are subject to individual
circumstances.
Flexibility to trade global markets
Through our simple online trading platform you can trade on the
movement of currencies, commodities, indices, sectors and
individual equities across markets in Europe, North America and
Asia, giving you access to hundreds of instruments not available
through traditional trading.
Make profits (or losses) when markets move up or down
By going short you can profit from a falling market as
easily as you could profit from a rising market. Conversely,
it is possible to make a loss from a rising market if you chose to
sell it.
Limited risk
Although spread betting is often thought of as inherently risky,
it does not need to be. By using stop losses and guaranteed stop
losses, you can limit the risk of every trade you place, and ensure
that you never lose more than you can afford to. To read more about
limiting your losses, read our managing your
risk page.
No commissions or fees
With spread betting, the price you are quoted is the price you
pay. There are no additional trading commissions as the cost of
trading is built into the spread.
Read more about the benefits of spread
betting vs conventional share trading.
Spread betting carries a high degree of risk. Please ensure that
you fully understand these risks by reading the Risk Warning
Notice.
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