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 aren't liable for capital gains tax, but spread-betting losses - which can be high - cannot be set against other gains to reduce tax.

Recommended

A recruitment firm to bet on as the world gets back to work
Trading

A recruitment firm to bet on as the world gets back to work

Recruitment consultant Hays has been volatile, but results are strong and trends encouraging. Matthew Partridge explains the best way to play the shar…
20 Jun 2022
Domino’s Pizza’s share price will heat up again – here's how to play it
Trading

Domino’s Pizza’s share price will heat up again – here's how to play it

Investors have lost their appetite for Domino’s Pizza chain, but the shares are cheap, says Matthew Partridge.
10 May 2022

Most Popular

Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023
Can I avoid IHT by stuffing all my money into a pension?
Personal finance

Can I avoid IHT by stuffing all my money into a pension?

The ditching of the lifetime allowance could enable millions of pension savers to avoid inheritance tax. We explain how.
20 Mar 2023