Spread Betting

Spread Betting is a flexible and tax-free* way to trade financial instruments including Forex, Indices and Commodities. Enabling you to spread bet on rising and falling markets.

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What is Spread Betting?

Spread Betting is a tax-free* way of trading on price movements, giving opportunities to speculate on rising and falling market prices on a wide variety of financial instruments.

The client is placing a bet on whether they expect the price of a product to go up or down in value. They will then buy or sell a pre-determined amount per point of movement for the specific instrument. This is known as the Spread Bet ‘stake’ size, for example £5 per point. The profit or loss will be calculated based on the number of points that the market has moved, for or against the client, multiplied by the stake amount.

Spread Bets, like CFDs, allow the client to trade an underlying asset without ever physically owning it, giving the ability to potentially profit regardless of market direction. If they go long (buy), their profit will rise in line with any increase in the market price. If they go short (sell), their profit will rise in line with any fall in the market price.

Spread Betting is a leveraged product, and as such, market moves can result in greater losses than the initial deposit. Leverage gives the ability to gain large exposure to the market using a small amount of capital. This gives the potential for profits or losses to be much higher than the traditional trading method, due to the magnified position.


Competitive spreads on over 50 highly liquid instruments

Our trading platform provides access to over fifty of the most liquid instruments, including Forex, Indices and Commodities, with competitive spreads and instant access. Trade major forex pairs from spreads of 1 point.

Forex
  • Number of instruments
  • 40+
  • Spreads from
  • 1 point
Indices
  • Number of instruments
  • 10+
  • Spreads from
  • 1 point
Commodities
  • Number of instruments
  • 5+
  • Spreads from
  • 3 points

Leverage and Risk

What is Leverage?

Leverage is a mechanism which allows the contract to be bought or sold using only a small amount of capital in relation to the full contract value.


For example, we may offer a leverage rate on EUR/GBP of 1:50, which is also equal to 2% of the total value of the position. In this case, if the client bought or sold a £1 stake on EUR/GBP at 0.87666, it would give a total position value of £8,766. The client would need only £175.32 to open the position as the leverage is equal to 2% of the full position value. This £175.32 is known as the client’s ‘margin’, these funds will be used to guarantee their position should the market move against them. Although the client is paying only a small percentage of the full contract value, they are still benefiting from the price gains as if they were holding the full £8,766 position value.

Do Leveraged products carry Risk?

All leveraged products carry a high degree of risk. As the position is magnified, profits and losses will be much higher in relation to the capital used to secure the trade. Adverse market moves can result in high losses.


The leverage will be set according to the client’s level of experience of trading Spread Bets and similar products. All exposure will be managed by pre-set margin call and stop-out levels with adequate warnings in place to keep you informed. Sudden adverse price movements can result in the closure of positions at pre-set stop-out levels in accordance with our client risk management policy. We provide risk management tools including limit and stop-loss orders to assist with your trading. Leveraged products may not be suitable for all clients therefore you must ensure that you fully understand the risks involved and take care to manage your exposure.


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About CFDs

Take a CFD (Contract for Difference) position on over 50 highly liquid instruments including Forex, Indices and Commodities.

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About Acetop Financial

Acetop Financial Limited was formed in 2016 and is authorised and regulated by the Financial Conduct Authority.

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*Under current UK tax law, spread betting is not subject to capital gains tax, however, tax laws are subject to change and depend on individual circumstances. Tax treatment may differ in a jurisdiction other than the UK.

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