A safer alternative to spread betting

Spread bets are a fast, effective and cheap way to trade. But they can be scary for new investors. One alternative to spread betting automatically builds in some downside protection – the covered warrant. Here's a guide to all the basics plus some of the key factors that influence the price.

Spread bets are a fast, effective and cheap way to trade. However, setting up a bet and then deciding on both the type of stop-loss order needed and the price level at which it should kick in can seem fiddly. There is an alternative that automatically builds in some downside protection the covered warrant. Anyone familiar with the traded options market will know all about these as the mechanics are very similar. For new investors, here's a guide to all the basics plus some of the key factors that influence the price.

What is a covered warrant?

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