What is spread betting?

In spread betting, the pay-off is based on the accuracy of the wager rather than a straight forward win or lose situation. This is because spread betting refers to a range of outcomes.

There is a high level of risk associated with spread betting and there is always the possibility that you will win or lose far more money than was originally wagered. But there is a regulatory body, known as the Financial Services Authority.

Despite the risk associated with spread betting, there has been a huge increase in the number of gamblers taking part in spread betting in the UK. It is reported that 30,000 spread bet accounts were opened last year.

The leading spread betting companies make most of their revenues from the financial markets using financial spread betting.
When getting involved in financial spread betting, it is important to understand that you are not buying anything, but simply betting on whether you think the market is likely to go up or down.

With financial spread betting, you can choose financial spreads in currencies or in gold or oil. And the internet has made it even easier for anyone to get involved in financial spread betting.