How it works

A financial spread betting company quotes the sell price and the buy price, usually around 2.5 points either side of what the company calculates the current market value of the instrument to be. This is called the 'spread' around the 'real' value of the instrument.

If you think the value will go up, click to specify how much per point you want to bet (usually from £1 to £100).

Once you confirm, sit back and watch the numbers change on the screen. If you think the price is going to fall, choose the sell price.

When you want to stop the trade, click to close the deal. You’ll then see your profit or loss. It’s as simple as that.

Many people are convinced that financial spreadbetting is very risky. There is risk attached, but it is perfectly possible to control the exposure to risk and limit your liability to lose.