What is Spread Betting?

Spread betting is an exciting, tax-free* and cost-effective alternative to conventional ways of trading global financial markets. It is easy to go long or go short on market prices and is now a well established financial trading method, used by many investors from all walks of life who wish to engage with financial markets on a regular basis.

Equity markets are unpredictable and with credit crunch woes continuing to haunt investors, the traditional buy-and-hold strategies of recent years are looking increasingly redundant. As such, many are seeking more flexibility when investing and are turning to products such as spread betting to help them try and profit from these new market conditions.

Financial spread betters have easy access to an unparalleled range of financial instruments on which they can trade - traditionally you may think active investors just trade the big household name stocks like Barclays or BP, but with spread betting, markets across the globe from the US to Japan are also available. Furthermore, clients can just as easily trade indices, commodities and Forex pairs as trading shares in BP.

As spread betting is a leveraged product it offers great opportunities of making substantial profits but please note it can also result in larger losses and you could lose more than your initial deposit. A comprehensive suite of risk management tools is always made available to clients, enabling them to manage their exposure to positions.

*Tax law can change or may differ in a jurisdiction other than the UK.

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Spread Betting, CFDs and Forex may not be suitable for all investors so ensure you fully understand the risks involved, and seek independent advice if necessary. These products are leveraged products and carry a high level of risk to your capital as it is possible to lose more than your initial investment. *Tax laws may change.

For the purposes of trading CFDs and Spread Betting, London South East Limited has introduced you to LSE Spreads, which is a trading name of Spread Co Limited ("Spread Co"), a company registered in England and Wales under registered number: 05614477, with its registered office at 22 Bruton Street, London W1J 6QE, authorised and regulated by the Financial Services Authority (FSA registration number 446677). For the purposes of trading CFDs and Spread Betting, the contract is between you and Spread Co and your account is with Spread Co. All dealing, administration and settlement in relation to your account is undertaken by Spread Co. London South East Limited is an Introducer Appointed Representative of Spread Co.

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