Why Spread Trading?

A spread bet is an agreement between a client and a provider to exchange the difference between the opening and closing value of the bet at a future date – this date may or may not be specified depending upon what you are trading. You are speculating on the direction of the future price movements in an underlying instrument and you indicate the amount you want to bet on each point movement. Your profit or loss is simply the difference between the opening price and closing price of your bet, times your stake. You can bet on a variety of instruments including major indices, currencies, commodities, individual equities quoted on leading exchanges, and their associated options.

 

Barclays Stockbrokers Financial Spread Trading

 

• Competitive margin requirements
• Instant execution
• Fully interactive online dealing
• Extended trading hours (for certain markets)
• Limited risk bets (Guaranteed Stop Loss Orders) available on certain markets (subject to the payment of a premium fee) Small minimum stake sizes (from £3 per point)

 

How spread betting works

If you’re used to traditional equity trading you’ll probably only have been able to buy shares with a view to selling them at a later date. Spread betting is different: as well as being able to “buy” shares with a view to “selling” them at a later date when the share price has risen to make a profit (going long), you also have the opportunity to take advantage of a falling market by “selling” shares and then “buying” them back at a later date when the share price has fallen. This is known as shorting (or going short).

 

 

As with share trading, spread betting quotes one price at which to sell (the ‘bid’) and one price at which to buy (the ‘offer’). The quote is adjusted to take account of financing costs, any expected dividends and our market making spread.

 

Important information
A key feature of spread betting is the leverage that it affords. Fluctuations in the value of the underlying instrument can quickly lead to profits or losses, which can exceed the initial deposit. Ensure you fully understand the risks, as spread betting is not suitable for everyone. Barclays Stockbrokers Financial Spreads offers an ‘execution only’ service and is not registered to give investment advice.

Barclays Stockbrokers Financial Spreads is authorised and regulated by the Financial Services Authority (FSA) and private customer funds are held in a segregated account. You should make sure you have read the Risk Warning Notice and Terms & Conditions before opening an account. You may also be required to complete an appropriateness assessment.

Barclays Stockbrokers Financial Spreads is a trading name of City Index Limited (CI) whose registered office is Moorgate Hall, 155 Moorgate, London, EC2M 6XB. For the purposes of CFD trading any contract is between you and CI and all dealing, administration and settlement is carried out by them and Barclays Stockbrokers are not responsible for any of the functions they perform or the following web pages.

Barclays Stockbrokers Limited and City Index Limited have remuneration and fee sharing agreements in place. Details of any shared commission, spreads, finance charges and fees shared for CFD and Financial Spread Trades placed are available upon request.