Spread trading is a way of trading the financial markets and profiting from ones that are falling. Once the exclusive playground of institutional fund managers and hedge funds, Worldspreads.com now offers individuals the opportunity to track the potential of commodity futures for online trading. We also offer short financial instruments, so that our investors can maximise their profits from volatile markets. Spread trading offers possible profit that is free of Stamp Duty, Income tax and Capital gains Tax – a much more economic alternative as opposed to using the services of a regular stock broker.

Using Worldspreads.com means that you do not have to wait for your stockbroker to ‘get back to you’: we offer instant execution on your spread trading decisions either by telephone or online. As an additional benefit, we also offer extended dealing hours on most instruments. You can call us between 7am and 9.15pm GMT and check the exact trading times for each instrument using our interactive website. So if you decide that certain commodity futures are ripe for online trading, you can execute your decision at the most appropriate time.

Spread trading with Worldspreads.com also allows you trade from as little as ? (or its foreign currency equivalent) per point on all the markets. This is far lower than you would be able to trade with a stockbroker on the underlying markets.

To find out how you can take advantage of our knowledge and expertise, or our spread trading tutorials and seminars, contact on of our helpful telephone advisors now.



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What is spread betting?

Simply put, financial spreadbetting is a tax free alternative to conventional trading.

Spread-betting is a very easy concept to understand. Indeed, if you already trade anything at all then you should have no trouble understanding the concept.

Do not get confused. For those of you out there who already trade derivatives, well, spreadbetting is just another derivative product. You do not actually buy the underlying stocks, you just speculate (bet) on where you think the prices will be at a point in the future. When you look at spread trading in this way, it becomes obvious that is basically the same as your regular trading in any other derivative instrument. When you close your position, your betting profit or loss is calculated as the difference between the opening price and closing price of the bet, multiplied your stake.

What are the attractive features of spreadbetting?

1. Spread betting is a derivative

As I explained above, spread-betting is just another derivative instrument. Like the typical derivative, spread trading gives you exposure to the movements of the underlying stocks, bonds, currency or commodity, without the need to actually own the financial security being traded.

2. Spreadbetting is a margin instrument

Typically, when you place a spread bet, you are only required to deposit about 10 percent of the total value of the trade.

This means that you get a bigger bang for your buck. Of course, you should be mindful that you can also lose more than your initial deposit if margin acts against you when a trade goes wrong. Whatever you do, always trade with discipline and never forget to use a stop loss.

3. It is capital gains TAX FREE!

The major advantage of financial spread-betting as it is currently structured is the fact that profits are tax free. Of course, as the spreadbet brokers are always quick to point out, tax laws are subject to change. But for now, the exemption from capital gains tax which can be as high as 40 per cent in the UK and Ireland makes this a potential lucrative and attractive vehicle for profitable short term traders.

Of course, it goes without saying that your ability to benefit from this particular feature of spreadbetting depends on the current legislation in your country. For those in the UK for instance, financial spread betting is classified as a bet rather than an investment or trade, and as such, is free from capital gains tax. So, you keep every profit you make. This tax-free attribute has meant that spread betting has enjoyed tremendous success and popularity in various jurisdictions including the UK and Australia.



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