Spread betting
Spread betting is a straightforward and tax-efficient way of leveraging the financial markets.
Spread betting is a straightforward and tax-efficient way of leveraging the financial markets.
The spread-betting company predicts where a price or score of anything from a share to a commodity to a cricket game will stand at a specified time in the future. The prediction takes the form of a spread – the range between the low and high estimates. You then bet on those prices, 'buying' at the high price if you think the price will rise from current levels and 'selling' at the low price if you believe it will fall.
Spread-betting profits count as gambling wins, so they aren't liable for capital gains tax. However, spread-betting losses – which can be high – cannot be set against other gains to reduce tax.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Nvidia's earnings live: China trade the key question for semiconductor giant’s results
Nvidia's shares have opened strongly ahead of its earnings, as analysts question whether Blackwell sales can make up for lost China revenue following Trump’s trade crackdown
-
8 of the best lakeside properties for sale
The best lakeside properties – from a house on the southeastern shore of Loch Lomond, to a 15th-century hall overlooking a lake in King’s Lynn, Norfolk