Financial Times - Lexiconhttp://lexicon.ft.comTerm of the Day from the Financial Times Lexiconen(PICS-1.1 "http://www.classify.org/safesurf/" L gen true for "http://www.ft.com/" r (SS~~000 1))&copy The Financial Times Ltd 2016 'FT' and 'Financial Times' are trademarks of The Financial Times Ltd. See http://www.ft.com/servicestools/help/terms#legal1 for the terms and conditions of reuse.client.support@ft.comTue, 16 Jun 2009 01:42:55 +0100Thu, 05 May 2016 02:45:13 GMTNewspapers15http://lexicon.ft.comhttp://lexicon.ft.comFinancial Timeshttp://im.media.ft.com/m/img/rss/RSS_Default_Image.gifhttp://lexicon.ft.comspread bettinghttp://lexicon.ft.com/Term?term=spread betting<p>A financial spread bet is a way of trading on an asset, such as a share or a commodity, or even an entire market, such as the FTSE 100 index, without having to physically own that asset.</p> <p>Spread betting involves taking two-way bets on the movement on assets such as foreign exchange, stock indices and commodity prices. An investor may make a bet while the spread betting firm acts as the counter party.</p> <p>The spread betting firm quotes buying and selling prices in 'points' based on the actual price of the asset in the market, and you, the investor, bet on those prices. Every point that moves in your favour results in a win in multiples of your stake - and every point against you results in a loss of multiples of your stake.</p> <p> </p> <p>If you think that an asset will rise in value, then you 'buy' the spread bet and aim to sell it at a higher price. This is known as "going long". If you think that an asset will fall in value, then you would 'sell' it and aim to buy it back at a cheaper price. This is known as going short.</p> <p>You can close a spread bet at any time when the spread betting firm is making a price, to realise a profit or loss, by taking out an opposite bet of the same initial stake. , </p> <p> </p> <h2>spread betting in the news</h2> <p>In December 2013 it was reported that the pool of people<a title="Spread betting shrinks by 8% as confidence in market grows - FT.com" href="http://www.ft.com/cms/s/0/05e3e2ac-5822-11e3-a2ed-00144feabdc0.html" target="_blank"> spread betting in the UK </a>had shrunk by 8 per cent over 2013, according to research firm Investment Trends. The decrease in numbers of spread betters was put down to improved sentiment in UK shares meaning investors no longer felt they had to try to cash in on market volatility.</p>Thu, 16 Jan 2014 17:22:31 +0000<p>A financial spread bet is a way of trading on an asset, such as a share or a commodity, or even an entire market, such as the FTSE 100 index, without having to physically own that asset.</p> <p>Spread betting involves taking two-way bets on the movement on assets such as foreign exchange, stock indices and commodity prices. An investor may make a bet while the spread betting firm acts as the counter party.</p> <p>The spread betting firm quotes buying and selling prices in 'points' based on the actual price of the asset in the market, and you, the investor, bet on those prices. Every point that moves in your favour results in a win in multiples of your stake - and every point against you results in a loss of multiples of your stake.</p> <p> <object id="flashObj" width="486" height="412" data="http://c.brightcove.com/services/viewer/federated_f9?isVid=1" type="application/x-shockwave-flash"> <param name="bgcolor" value="#FFFFFF" /> <param name="flashVars" value="videoId=62699203001&amp;playerID=47620531001&amp;playerKey=AQ~~,AAAACxbljZk~,eD0zYozylZ0C7p-s6X-N9CdnEPrTa_tB&amp;domain=embed&amp;dynamicStreaming=true" /> <param name="base" value="http://admin.brightcove.com" /> <param name="seamlesstabbing" value="false" /> <param name="allowFullScreen" value="true" /> <param name="swLiveConnect" value="true" /> <param name="allowScriptAccess" value="always" /> <param name="src" value="http://c.brightcove.com/services/viewer/federated_f9?isVid=1" /> <param name="name" value="flashObj" /> <param name="flashvars" value="videoId=62699203001&amp;playerID=47620531001&amp;playerKey=AQ~~,AAAACxbljZk~,eD0zYozylZ0C7p-s6X-N9CdnEPrTa_tB&amp;domain=embed&amp;dynamicStreaming=true" /> <param name="allowfullscreen" value="true" /> </object> </p> <p>If you think that an asset will rise in value, then you 'buy' the spread bet and aim to sell it at a higher price. This is known as "going long". If you think that an asset will fall in value, then you would 'sell' it and aim to buy it back at a cheaper price. This is known as going short.</p> <p>You can close a spread bet at any time when the spread betting firm is making a price, to realise a profit or loss, by taking out an opposite bet of the same initial stake.&nbsp;[ref url="http://www.ftmoneygym.com"]FT Money Gym[/ref],&nbsp;[ref url=""]Philip Stafford, Reporter, Trading Room, Financial Times[/ref]</p> <p>&nbsp;</p> <h2>spread betting in the news</h2> <p>In December 2013 it was reported that the pool of people<a title="Spread betting shrinks by 8% as confidence in market grows - FT.com" href="http://www.ft.com/cms/s/0/05e3e2ac-5822-11e3-a2ed-00144feabdc0.html" target="_blank"> spread betting in the UK </a>had shrunk by 8 per cent over 2013, according to research firm Investment Trends. The decrease in numbers of spread betters was put down to improved sentiment in UK shares meaning investors no longer felt they had to try to cash in on market volatility.</p>