Spread betting is a form of gambling

Spread betting is a form of gambling. You are taking an element of risk by betting on the chance of the price of a commodity going up or down. Although normally betting and gambling on the stock market involves a high amount of risk and you can lose a huge amount of money in one go. Spread betting has a system which prevents you from making huge loses but can also prevent you from making as much money like if you were trading shares on the stock markets.

You can spread bet on almost anything you like, such as how many goals Fernando Torres is going to score for Liverpool this season or how many horses cross the finishing line at the Grand National. The possibilities are endless so you can choose whatever takes your fancy.

If you place a ‘buy’ bet you are spread betting that the price or worth of something is going to increase. If you place a ‘sell’ bet you are predicting that the price is going to fall. One of the great things about spread betting is that it is so easy and simple to get started. You don’t need to be a stock broker or have an understanding of the financial markets.