Howto & Guides

Tutorials and guides for spread betting.

What Is Spread Betting?

Published by Filipe R. Costa on Tue, 15/03/2011 - 12:03

Spread betting is a way of assuming a position in financial markets. A leveraged bet, similar to margin trading. When you want to buy shares, you go to your stockbroker or to your online trading platform, and choose the shares you want to deal. You are then presented with two prices, one lower and another higher. Basically you get a bid and an ask prices. If you want to buy, you get the ask price, the higher one. If you want to sell, you face the bid price, the lower one. The difference between bid and ask prices is called the spread. And it is from that difference, that spread betting derives its name.