Spread Betting
What is Spread Betting
Trade long or short in a tax-freeway by spread betting at Capital Index. Choose from thousands of markets across the globe. Spread bets are a leveraged product, similar to CFDs, but there is no Capital Gains Tax or Stamp Duty on profits’ from spread betting within the UK.
Spread Betting is a leveraged product. Leveraged trading allows you to put only a small upfront investment in order to open a much larger position. Trading using leverage means that there are significant benefits and risks: your investment capital can go further, but you could lose your entire investment if the trade goes against you, if you are a Retail Client. Professional clients can lose more than their deposits and they may be required to deposit additional funds to cover their losses. It is therefore important to understand the risks involved and have suitable risk management strategies in place.
Spread Betting allows you the flexibility and ability to buy (go long) as well as sell (go short), depending on your view of the market.  You are also able to Hedge positions in both directions at the same time. Further, in the UK, Spread Betting is free from tax*. Any profits made will be exempt from Capital Gains Tax and Stamp Duty*. Conversely, losses cannot be used to offset an individual’s tax liabilities*.
Spread Bet example:
UK 100 is currently trading in the
underlying market at
7,098 (Bid Price)Â / 7,100 (Ask Price).