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If the underlying share price moved disastrously against you overnight, for example, you might lose the whole of your investment if you had bought the share. However, if you had placed a bet on the share and you had imposed a guaranteed stop-loss limit, you would limit your loss to a predetermined amount. A stop-loss is exactly what it is called – a limit to the amount you might lose. On the other hand, there is no limit to the amount you might win. Financial spread betting provides a simple, tax-free* way to profit from rising and falling prices on a range of different markets. As a world leader in spread betting for 35 years, IG Index is the UK’s largest and longest running financial spread betting company. With IG Index you can take positions on forex pairs, global stock indices, over 7000 shares, commodities, binary bets and more Financial Spread Betting is the most efficient leverage tool for traders, in the financial markets. Traders have the opportunity to trade with no real ownership in the market. Explore the Financial Spread Betting markets and learn how to trade successfully.As current or future investors you are well aware of the fact that in order to trade in the financial market you need to own or be a part of it as far as investment of money goes. With Financial Spread Betting the story is different.This is your chance to get involved in the stock market or in any other financial market with a value such as gas, oil gold and so on, without actually being invested. This is not only convenient financially but also requires less effort as far as bureaucracy goes.So what is Financial Spread Betting anyway?Financial Spread betting enables the trader to lay an over / under bet with the ability to minimize the risks and optimize the profits by ending the bet as soon as it goes the other way around from the bet (stop loss) or getting out while you are ahead.Financial Spread Betting is available for various products including shares, currency exchange, commodities and just about anything with a value.The spread is the difference between the bid and the offer price for example taking the apple stock and placing a bet that it will rise (go long) and it indeed rise, then you will get your bet times the number of points it went up.Financial spread betting is gaining popularity in Europe and mainly in the UK. Even though it existed for years, it is now becoming available online and much like other new trends online, many companies are seeking the opportunity of catching customers by offering lucrative incentive offers such as welcome bonus.

Financial spread betting is a leveraged tool that gives investors the opportunity to trade the financial markets without ever taking physical ownership of the underlying instrument. This means that the trader/investor can speculate in the direction of any financial instrument, whether it is specific shares, currencies, commodities or indices without ever owning them. In the financial markets there are standard contract sizes. For example for the FTSE 100 index contract the standard market size is £10. With financial spread betting the investor nominates his own stake size, for example £2 per point. The bet is settled as the difference between the purchase and the sell price.Financial Spreads is appealing to ever greater numbers of investors for several reasons, not least of which is the absence of capital gains tax on profits (unlike conventional share trading, where CGT applies to trading gains in many countries), and the lack of stamp duty on transactions (most interesting in the UK; strictly speaking, the transaction is a bet, rather than an investment – hence the name.) However, by its very nature financial spread betting is more risky than traditional, fixed odds betting, or conventional traditional share trading, where participants are usually a little more protected. If you judge wrong, you are likely to lose a great deal in the absence of a stop loss and any losses made on a spread bet cannot be offset against capital gains on ordinary investments.The costs associated with financial spread betting are included in the spread (the difference between the bid and the offer price). Therefore the wider the spread, the more you pay to trade. So when considering a company to spread bet always compare the spread. The good news about the spreads is that these are generally getting tighter due to increased competition and explosive growth as investors are beginning to realise the advantages of financial spread betting; thus making the system more efficient.Many people think that financial sprad betting is too risky. Subconsciously, they feel that investing in shares is ethically acceptable whereas betting has down market connotations and morally reprehensible. That is a pity, because the truth is quite different. You buy a share because you believe that the price will rise and you will make a profit. You bet on a share price for exactly the same reason. The only practical difference between buying a share, and betting on the movement of the share price is that you need much more ready cash to buy the share. The costs of buying a share are much greater than placing a bet.Open a GFT AccountIf the underlying share price moved disastrously against you overnight, for example, you might los