Speculate on the price movement of an investment, regardless of whether it's rising or falling.
It's important to be aware that Spread Trading (or Spread Betting as it's sometimes called) is a high risk product which means that it's for experienced traders, where it fits with their personal circumstances.
Just like traditional share dealing, there's a difference between the buy and sell price, this is known as ‘the spread’. To place a spread trade, you initially pay a percentage of the trade value (usually between 1% and 10%) up front. The profit or loss you make is then measured using the full value of the trade. This means a small price movement can magnify your profit but, of course, this can also magnify your losses too!
Simply put, this is where you decide whether you think the price of an investment will go up or down from its current value. If you think that the price will decrease you ‘go short’ or sell, if you think the price will increase you ‘go long’ and buy.
• Spread Trading is a leveraged product and it's possible to lose substantially more money than your initial deposit.
• You may be required to make further deposits at short notice to maintain open positions.
• Spread Trading is a high risk product designed for experienced investors where it fits with their personal circumstances.
What is Spread Trading? Understanding the risks How to Spread Trade
Important Information General Terms Key Service Features
Margins and Financing Going long or short Apply for an account
Please make sure that you've read, and taken the necessary steps to understand, our General Terms and Key Service Features before opening an account.
Spread Trading is a leveraged product which offers a potentially large exposure to the underlying security for a relatively small amount of capital. This will have the effect of magnifying profits or losses, and consequentially carries significant risk. You can quickly lose more than your initial investment so you must be fully aware of the risks before you begin.
IWeb Spread Trading is provided by City Index Ltd and therefore your contractual relationship is with City Index.
City Index Limited is authorised and regulated by the Financial Services Authority (FSA Register Number 113942).
Spread Trading and CFDs carry above average risk, please remember that it is possible to quickly lose substantially more money than your initial deposit and you may be required to make further deposits at short notice. Spread Trading and CFDs are not for everyone so please ensure you understand the risks.