Spread bet

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A spread bet is a bet with a variable amount of losses or winnings, depending on a market price, rather than a simple predetermined loss or win.

The spread betting firm quotes two-way buying and selling prices in 'points' based on the actual price of an asset or index in the market.

The bettor, also known as the 'investor', bets against the less favourable of those two-way prices.

Every point that moves in the bettor's favour results in a win of multiples of the initial stake - and every point against the bettor results in losses of multiples of the stake.

See also