Spread betting is a way to speculate on a market’s price movement by betting an amount per point, rather than buying the asset. Popular in the UK because profits can be tax-free there, it uses leverage like CFDs and carries the same risk of losing more than you expect.
Forex Term
Spread Betting
A tax-favoured way to bet on price moves, mainly in the UK.
Example
Betting £2 per point on EUR/USD earns £2 for every pip it moves in your favour.
Related Terms
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.