In the U.K., spread bets are tax-free, which means traders don’t pay the capital gains tax on profits.

Margin is the amount of money a trader needs to have in their account to open a leveraged position.

Leverage is when traders use a smaller amount of capital to gain exposure to larger trading positions.

Traders go long when they bet that an asset’s price will rise, while going short denotes betting that the asset’s price will decrease.

Taurex lets you spread bet on a wide range of financial instruments, including forex, indices, commodities, metals, shares and more.

Spread betting involves choosing an asset to trade, deciding whether to go long (betting the price will rise) or short (betting the price will fall),
selecting a stake size (amount risked per point movement), and understanding the spread (the difference between the buy and sell price).
Profits or losses are determined by the difference between the asset’s opening and closing values, multiplied by the stake size.

As with all trading, spread betting involves risk. Some of the main risks involved with spread betting include the use of  leverage, which can increase
profits or magnify losses, potential market volatility, where a sudden price movement can result in a significant loss, and the lack of control over
the underlying asset.

Some of the advantages of spread betting include the use of leverage, which allows traders to magnify their profits and losses by trading on margin,
tax-free profits in the U.K., flexibility and access to a wide range of markets.

Spread betting is a way for traders to speculate on the price movement of financial instruments including forex, shares, commodities, metals and more.