Spreadbet Account

Spread betting offers a way to participate in the financial markets by speculating on the price movements of assets like gold and oil, mirroring the mechanics of CFD trading.

The core principle is straightforward: you place a bet on whether you believe the price of an asset will rise (go long) or fall (go short). Your potential profit or loss is directly tied to the accuracy of your prediction. If the market moves in your anticipated direction, your bet yields a profit, the size of which depends on the extent of the movement. Conversely, if the market trends against your prediction, you will incur a loss, with the potential for larger losses if the market moves significantly against you.

The spread, the difference between the buy and sell price, is a crucial factor for investors to consider. A narrower spread, often referred to as a “tight” spread, indicates that the buy and sell prices are closely aligned.

The lot size in trading, particularly within the context of Spread Betting accounts, represents the amount you allocate per unit of movement in the underlying market. Crucially, understanding the lot size is paramount because it directly dictates the magnitude of both your potential gains and potential losses. A larger lot size amplifies both, meaning a favorable market move can lead to substantial profits, but an unfavorable one can result in equally significant losses. While the concept is similar to a bet size, it’s important to note that in our Spread Betting account the size function more like standard FX/CFD accounts, utilizing lot sizes for position sizing while offering the benefit of tax exemption. Therefore, choosing the appropriate lot size is a critical element of risk management, requiring careful consideration of your capital, risk tolerance, and the volatility of the market you’re trading.

Only residents of Great Britain and Northern Ireland (UK) are eligible for spread bet accounts.