Spread betting is a tax* efficient way of trading the financial markets without having to physically own the underlying instrument. They are cash settled products that allow you to speculate on the price movements of a financial instrument.
Another key difference to conventional share trading, for example, is that spread bets are a derivative product traded using leverage - so they are not as capital intensive as physical share trading as you only need to deposit a percentage of the full value of your position. The effect or impact of leverage can amplify losses as well as profits, so it’s important to understand the risks before deciding to trade.
*Tax treatment depends on individual circumstances and is subject to change. Tax laws may vary outside the UK. Your profits and losses are amplified as they are based on the full value of your trade.