Spread Betting has its advantages

It is difficult enough right now to make money on the markets without the Inland Revenue taking away a large proportion of the gains. So the good news is that all profits from spread betting are free of Capital Gains Tax (CGT).

1. You can minimise risk and restrict your potential losses by guaranteeing your 'stop loss' (the point at which you get out).

Whilst conventional share purchasing also permits you to set a stop loss, this cannot be guaranteed. If your share takes a turn for the worse overnight, your broker may still not be able to pull you out fast enough the next day to ensure you get out at the stop-loss price you requested.

Financial spread betting differs - even if the shares move a great deal, you'll still be taken out of the bet at the guaranteed stop-loss price you asked for with the  spread betting company having to absorb the additional loss themselves.

2. In contrast to betting on a horse race or at the dogs, with spread betting you can choose when to enter and exit your position.

You do not have to wait until the end to exit your position. You can close all/part of your bet at any time enabling you to lock in some/all of the profit at pretty much any time.