| Financial spread betting is a way of trading on a financial market or product such as a share or a commodity without having to physically own it. The Guide on this page provides an overview of the main questions investors ask about how they can go about engaging in this form of tax efficient trading and hedging. Spread betting is best seen as a risk management tool; it enables the user to both take on and offload risk, and thereby hedge, or offset, underlying risk that might exist within other long or short positions. Because of the potential leverage possible through spread betting, it can magnify risk positions, and thus care and due consideration must always be foremost in engaging in any trading activity. |
