Spread Betting with Trade.com
Spread Betting Explained
Spread betting is a form of financial trading that is based upon derivatives. With this type of trading, the investor does not actually own the asset which he is trading. Instead, he is speculating on the price movements of the said asset. Will the asset price rise or fall?
In many ways, spread betting is similar to stock trading. Like stocks, spread betting involves two prices, the BID price (Buying price) and the ASK price. (Selling price). The difference between these two prices is known as the spread which is what the broker earns and also which is what makes spread betting commission free.