Spread Betting
Spread betting is a UK and Irish tax-advantaged derivative format where you bet per point of price movement, never owning the asset.
Spread betting bets a fixed amount per point of price movement, popular in the UK and Ireland for its tax advantages. The mechanics mirror CFD trading and FCA regulation applies.
Spread betting is a derivative format, popular in the UK and Ireland, where you bet a fixed amount per point of price movement in an instrument. It is tax-advantaged in those jurisdictions, with no stamp duty and, for most traders, no capital gains tax on profits, and it is exempt from UK gambling duty for the bookmaker. The mechanics match CFD trading: leveraged, trade the price not the asset, and regulated by the FCA. Because of the tax treatment it is often the preferred retail wrapper in the UK.
How It Works
- Bet amount per point, e.g. £5 per point on EUR/USD
- Leveraged, trade the price not the asset
- UK/Ireland tax advantages for most retail traders
Trading Tips
The tax edge is real but the risk profile is identical to CFDs
Losses can exceed deposits with leverage - treat the bet size like a position size
FCA-regulated spread betting brokers must show the retail loss disclosure
Related Terms
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