Spread Betting Log in Information
RBS Share Dealing Home
Financial Spread Betting is a form of trading in which you bet on the price movement of a share, index, currency, commodity or bond. It is a way of playing the stock markets without actually owning any shares.
Spread betting is a type of derivative (a financial instrument that is ‘derived’ from an underlying market such as equities). It’s a practical form of short term investing and gives you access to a huge range of financial products in a number of global markets.
There are two types of accounts:
Spread Betting
Spread betting is a tax free (under current tax laws, they can of course change), cost effective alternative to traditional share trading. It allows you to speculate on the movement of stocks and shares without using a stockbroker, and therefore you do not have to pay commission or fees.
Contract for Difference (CFD)
CFDs work in a very similar way to Spread Betting and are also a flexible and cost effective way to trade a wide range of financial markets. CFD means Contract for Difference and just like other investments your profit or loss is determined by the difference between your buy price and your sell price.