Financial Spread Betting
Financial spread betting is something that is commonly used to speculate which direction the share price of a stock/commodity/index will take without actually having to own or purchase any of the shares. It’s now becoming one of the UK’s most popular methods of trading. That’s hardly surprising given that any profits are completely free from stamp duty and Capital Gains and Income Tax in the UK.
Essentially, a spread bet is placed between the client and spread betting company where the bet is based on an underlying financial instrument of choice. Actual ownership of that financial instrument never takes place.