Advantages & Disadvantages of Spread Betting ????

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Advantages and disadvantages of spreadbetting. What is spread betting and why do traders use it? Spread betting is basically a tax-free wrapper (if you're in the UK) of speculating on the direction of a market.. This could be the direction of an index like the FTSE 100, a currency pair like EUR/USD or an individual stock..etc In simplistic terms you are betting on the price going up or down. Spread betting is very accessible and it provides a way for the average person to get involved in the markets with a relatively small amount of capital.

Benefits and Risks of Using Spread Betting to Trade:

- Tax
- Long + Short - you are able to go long and short.
- Local FX - there is no currency conversion.
- Leverage

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