"Spread betting occupies a curious niche in the UK financial landscape. Its tax perks, low barriers to entry and 24-hour markets lure thousands each year, yet most walk away poorer. The question that hangs over every new account holder is brutally simple: can you actually craft a spread-betting strategy that works, and sticks, for the long haul? The short answer is "yes, but not by accident." The longer answer requires a candid look at how strategies are built, tested and stress-proofed."
"Spread betting lets you speculate on price movements without owning the underlying asset. You stake a certain amount per point of movement; profits and losses swing in direct proportion. Because profits are exempt from UK Capital Gains Tax and stamp duty, the product remains popular even after multiple FCA clamp-downs on leverage. Many brokers for spread betting now offer platforms that make access easy, but the choice of provider can dramatically affect execution quality, spreads, and available markets."
Spread betting allows speculation on price movements without owning underlying assets by staking an amount per point, with profits and losses moving proportionally. UK tax exemptions on capital gains and stamp duty and 24-hour markets increase its appeal despite FCA limits on leverage. Broker choice affects execution, spreads and market access, and FCA disclosures show about 69% of UK retail accounts lose money on spread betting and CFDs. Successful spread-betting requires a defined edge, rigorous risk management and discipline. Casual or ad-hoc approaches typically fail, so strategies must be built, tested and stress-proofed before deployment.
Read at Business Matters
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