Financial Spread Betting
Financial spread betting at a glance
In financial spread betting you predict how the prices of the products will change. Your profit or loss is measured in pounds (£) per point i.e. for each 'point' that the product changes, you gain or lose.
For example, the UK100 (CMC Spreadbet Plc's index based on a basket of the UK's leading 100 shares by market capitalisation) is available at a price of 6,140 / 6,142 in Marketmaker®.
That is, 6,140 to 'sell' and 6,142 to 'buy’.
If you believe the UK100 will rise, you can place a bet in which you 'buy' the UK100 at 6,142 for a stake of £5 per point.
Right? If the UK100 rises to a price of 6,165 / 6,167, you can then 'sell' your bet at 6,165. You would therefore have made £115 ( (6,165 – 6,142) x 5 =115)
Wrong? If the UK100 falls to 6,129 / 6,132, you would lose £65 ( (6,129 – 6,142) x 5 = -65).
I’m new to this
Find out how much spread betting costs, how to manage risk and what to do next.
Services relating to Contracts for Difference are provided by CMC Markets UK Plc and Spread Betting Services are provided by CMC Spreadbet Plc (trading as NatWest Index) to whom you have been introduced by NatWest Stockbrokers Limited. All dealing, administration and settlement in relation to these services are undertaken by CMC Markets UK Plc and CMC Spreadbet Plc who are authorised and regulated by the Financial Services Authority.
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