Spread Betting Definition
Spread Betting is a form of trading that is very similar to Forex and CFD trading. The main difference of Spread Betting is instead of deciding the size of the position you want to take (i.e. 100,000 EUR/USD or 1 Lot), you enter how much you want to profit or lose when the market moves one Pip in or against your favour. If you say want to profit $10 for every Pip, you are essentially taking the same position size, require the same margin and take the same risk. Spread Betting became very popular in the UK because it’s considered gambling (betting) so profits are not taxable. Most brokers in the UK offer Spread Betting alongside forex and CFD trading.