Select Account Type

individualcorporate
+

Please select an option

Login

Download MetaTrader5

DesktopAndroidiOS
+
Risk Warning: CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage.
44.88% of retail investor accounts lose money when trading CFDs and spread bets with this provider.
You should consider whether you understand how CFDs and spread bets work and whether you can afford to take the high risk of losing your money.

Spread Bet


Whether you are a new or a seasoned trader looking to speculate on the financial markets, Spread Betting is a great way to gain exposure in an asset without having to worry about currency risk. Without the need to pay any extra commission fees, APM Markets offers competitive spreads waiting for you to explore.
Start trading

What is Spread Bet?

Spread Betting is a type of derivative trading that allows individuals to speculate on the price movement of financial markets without actually owning the underlying asset. It involves betting on whether a particular market will rise or fall by placing a stake on each point of movement. It is most commonly available for shares, indices, currencies, commodities and interest rates. It is important to note that in Spread Betting a trader generate their P&L in their account currency, no matter what the underlying currency is.
‍

How Does Spread Betting Work?

For a Spread Bet trade, a broker will quote a price that consists of a bid (sell price) and an offer/ask (buy price). The difference between these two prices is known as "the spread".

Traders speculate on whether the price of an asset will move up or down.

Going long (buying): If a trader believes the price of an asset will rise, they will "buy" or go long.
Going short (selling): If a trader believes the price of an asset will fall, they will "sell" or go short.

A trader makes either a profit or a loss based on whether the price moves in their favour or against them.
‍
Example of a Spread Bet trade:
‍
You place a bet and go long on Crude Oil at a price of 80.00, with a stake of £10 per point. One point in Crude Oil is 0.01.
‍
If Crude Oil rises by 15 points to 80.15, you would make a profit of £150 (15 points x £10 per point).
If the price drops by 15 points to 79.85, you would lose £150 (15 points x £10 per point).
‍
By trading in GBP, you eliminate any currency (FX) risk or conversion fees typically associated with trading international assets.
‍

Features of Spread Betting

Leverage to Amplify Potential: Spread Betting is typically done with leverage, meaning you only need to deposit a fraction of the full value of your position. This amplifies both profits and losses.

‍Tax advantages: In the UK and Ireland, Spread Betting profits are exempt from Capital Gains Tax (CGT) and Stamp Duty †.

‍
‍No Commissions: Spread Betting is commission free. The Spread Bet provider will instead benefit from the spread. This is the difference between the bid price and the offer/ask price. This simplifies the cost structure for traders.

‍Flexible Position Sizing: You can decide how much to bet per point of market movement, allowing for flexible position sizing. This can be particularly useful for managing risk.

‍‍Spreads Can Be Wide: Brokers set "the spread" between the buy and sell price, and this spread can widen during periods of high volatility or low liquidity, making it more expensive to enter or exit trades.

Start trading