How spread betting works
12 April 2012
Spread betting allows investors to bet on share price movements outside the City's mainstream tax and disclosure regime.
IG Index, the biggest spread betting firm in London, offers this explanation:
"We make a quote for the price of the share on a given date in the future. You decide whether you think the share will be higher or lower by that time."
Punters who think shares will rise place an up bet, so "buying" the share at the quoted price. If you think the price will fall, you make a down bet, so "selling" at the quoted price.
