Financial Spread Betting is different from conventional trading, in that it enables you to profit irrespective of whether the markets are going up or down. Spread Betting with City Index enables you to benefit from the following features:
All profits made in spread betting are exempt from UK Capital Gains Tax*. This automatically saves you a large percentage of your profits that you would normally have to pay if you were to trade the underlying markets. As spread betting is a derivatives product, it is also exempt from UK stamp duty. Tax laws are subject to change and depend on individual circumstances.
We recognise the importance of being able to access your account and trade whenever you want, wherever you are, particularly when market prices are moving quickly. We therefore give you unrestricted access to your account 24 hours a day, 7 days a week. Furthermore, we run a number of our markets 24 hours a day, including major indices such as the UK 100 and Wall Street, enabling you to spread bet even when the underlying markets are closed.
As a leveraged product, spread betting requires you to deposit only a small percentage of the full value of your position - this is known as margin. The margin required is typically between 1% and 10% of the total value of your position, depending on the market you wish to trade.
Our margins for currencies start from just 1%. This means that the potential for profits, or losses, from an initial capital outlay is significantly higher than traditional trading and losses can exceed your initial outlay. See the Market Information Sheets in our Range of Markets section, or see the Market Information icons on our online Trading Platform for further details.
With spread betting, you can gain exposure to market movements regardless of the direction in which the markets are moving. If you think the markets are going to rise, you go long on the price (buy). Your profits will rise in line with any increase in that price (your losses will increase in line with any fall in that price).
If, on the other hand, you think the markets will fall you go short on the price (sell). Your profits will rise in line with any fall on that price (and your losses will increase with any rise in price).
Spread betting is one of the few forms of financial trading that enables you to profit from falling market prices.
With spread betting, you can not only take a position on thousands of individual shares, indices and currencies around the world, but also place trades on sectors, commodities, bonds and interest rates.
Indices such as the UK 100 are some of the most widely traded markets in the world and are especially popular among new traders. We offer some of the tightest spreads available in the market, with 1-point spreads on the UK 100, Wall Street, Germany 30 and France 40. See our range of spread bet markets.
Spread betting, CFDs and Forex trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
*Spread betting and CFD trading are exempt from UK stamp duty. Spread betting is also exempt from UK Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.
+Margin Factor is shown here as a guide only. For the current margin factor applicable to your position please refer to the Market Information on our Trading Platform.
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