What is spread betting?

Spread betting refers to speculating on the direction of a financial market without actually owning the underlying security. It involves placing a bet on the price movement of a security.

What is a margin call in spread betting?

The margin call involves the spread betting firm demanding more money, before closing out your position at the current price if you cannot pay the required amount. Margin calls are not the most secure way to ensure safe spread betting, as you can quickly get into difficulty.

Who regulates spread betting in the UK?

In the UK, financial spread betting is regulated by the Financial Conduct Authority rather than the Gambling Commission who regulate spread betting on sports.

What is 'gapping' in spread betting?

However, it is important to understand that 'gapping' can occur in spread betting, whereby a market moves very fast and the stop-loss orders of large numbers of people are implemented at once.