What is Spread Betting?
Financial spread betting is a way of trading on the price movement of a financial market or instrument, i.e. whether it will go up or down in value.
This allows you to trade the markets without the inconvenience, costs and limitations associated with physical ownership.
Investors can trade a wide range of instruments, from commodities, such as Gold or Oil, to indices such as the UK 100 or the US 30.
![bulls [Converted]](https://www.fxgm.co.uk/wp-content/uploads/2021/04/bulls_Converted-1.jpg)
You can also trade on Forex, where you take a position on whether one currency in a pair will strengthen or weaken against the other or on individual company shares –it’s completely up to you.
Choose from over 3000 commodities, indices, currency pairs and companies, via our next generation platform.
When you spreadbet on whether the price of a financial instrument will go up or down in value, for every point an instrument moves in your favour, you gain multiples of your stake.
For every point it moves against you, you lose multiples of your stake.
If you think that a certain financial market will rise in value, then you ‘buy’ the product with the aim of selling it back at a higher price.
This is known as ‘going long’.
If you think that a financial market will fall in value, then you ‘sell’ first and aim to buy it back later at a cheaper price. This is known as ‘going short’