Stake per point
The amount you risk for every point the market moves. A £1 stake means each point of movement equals £1 of profit or loss.
Understand spread betting before you ever place a trade.
Built for first-time learners. Clear, structured education that explains how spread betting works, the tax treatment, the costs, and — most importantly — the disciplines that help you stay in control of your capital.
Lesson 01 — The basics
What a spread actually is, in plain English
0%
No stamp duty payable, since you don't acquire the underlying asset.
0%
UK Capital Gains Tax on spread betting profits, under current rules
24/7
access to structured lessons, glossaries and worked examples
Free
access to the spread betting educational materials
Foundations
What spread betting actually is
Spread betting is a way to speculate on the price movement of financial markets — shares, indices, currencies, commodities and more — without ever owning the underlying asset. You are simply taking a view on whether a price will rise or fall.
The "spread" is the small difference between the buy price and the sell price quoted by the provider. The "bet" is the amount per point you choose to stake. If the market moves in your favour, you profit; if it moves against you, you lose — and because of leverage, those losses can mount quickly.
Going long
"Long" means you expect the price to rise. You buy at the provider's buy price, aiming to close the position later at a higher level.
Going short
"Short" means you expect the price to fall. You sell at the provider's sell price, aiming to buy it back later at a lower level.
Leverage & margin
You only deposit a fraction of the full trade value. This amplifies both gains and losses — the single most important concept to understand.
Mechanics
How a spread bet works, step by step
A worked example is worth a thousand definitions. Below, the same market is viewed from two sides — one trader goes long, one goes short — so you can see exactly how profit and loss are calculated.
Interactive Spread Bet Simulator
Adjust the direction, stake size, and market movement to see how profit and loss are calculated.
Exit Price
7,600
Points Moved
+100
Profit / Loss
+£1,000
Step 01
Choose your market
Select from indices, forex, shares, commodities or rates. Each market has its own behaviour, hours and volatility profile — so begin with one you understand.
Step 02
Decide direction & size
Take a view — long if you expect a rise, short if you expect a fall — then choose your stake per point. Your stake, combined with leverage, determines your full risk exposure.
Step 03
Manage & close
Use stop-loss orders from the outset. Close the position manually when your view changes or your target is reached. Never leave a leveraged position unattended.
Tax treatmentUK
Why tax treatment makes spread betting distinctive
Under current UK tax rules, spread betting is classified as a form of gambling rather than investing. The practical consequence is that any gains are generally free from Capital Gains Tax, and because you don't acquire the underlying asset, there is no Stamp Duty Reserve Tax to pay either.
This tax treatment is one reason some experienced traders find spread betting interesting for short-term directional views on markets. It is, however, not the only factor to consider — and tax rules can change at any time.
Important: Tax treatment depends on your individual circumstances and may be subject to change in the future. The information on this page is for educational purposes only and does not constitute tax advice. You should seek independent professional tax advice before making any decision based on this information.
London · The centre of UK financial regulation
Capital Gains Tax
0%
Generally no CGT on spread betting gains under current UK rules.
Stamp Duty
0%
No stamp duty payable, since you don't acquire the underlying asset.
Loss relief
None
Losses are not tax-deductible against other capital gains.
Classification
Gambling
Treated as gambling, not investing, for UK tax purposes.
Risk awareness
Risk management is the most important lesson
Because spread betting uses leverage, your losses can mount quickly — and in some market conditions can exceed your initial deposit. These three disciplines sit at the centre of every responsible trader's approach.
Use stop-loss orders
A stop-loss automatically closes your position when the market moves against you by a specified amount. It caps your downside on each trade. Note that, in fast-moving markets, stop-loss orders may be subject to slippage — your position may close at a worse level than the level you set.
Size positions sensibly
Never stake more per point than you can afford to lose on the trade as a whole. A common guideline is to risk no more than 1–2% of your total trading capital on any single position, so that a string of losses doesn't wipe out your account.
Understand leverage fully
Leverage magnifies both gains and losses. A small move in the underlying market can produce a much larger proportional change in your account. Make sure you understand exactly how much you stand to lose in a variety of scenarios before opening a position.
Markets
The markets you can spread bet on
Each market has its own character — volatility, hours, drivers and liquidity. Our curriculum walks through each one in turn, so you understand what moves them before you ever risk capital.
Indices
Trade the overall direction of markets like the FTSE 100, S&P 500 or DAX. A common starting point because they are broad, liquid and well-covered.
FTSE 100 · Wall Street · DAX
Forex
The world's largest market. Speculate on currency pairs like GBP/USD or EUR/GBP, driven by interest rates, economic data and geopolitical events.
GBP/USD · EUR/USD · USD/JPY
Shares
Take a view on individual companies — UK, US and international — without the stamp duty or share-dealing commissions of conventional ownership.
UK 100 · US Tech · Europe 350
Commodities
Gold, oil, silver, natural gas and more. Often used to hedge other exposures or to express views on inflation, supply shocks and global growth.
Gold · Crude Oil · Silver
Free curriculum access
Build your foundation before you risk a penny.
Join thousands of first-time learners building a real understanding of the markets — structured, plain-English education delivered free to your inbox.
-
Structured pathway Lessons that build on each other in a deliberate order — no jumping ahead.
-
Plain English first Every term defined the first time it appears. No jargon without explanation.
-
Risk-first framing What can go wrong, before what might go right. Discipline over hype.
50+
Structured lessons
12
Markets explained
100%
Free, forever
GDPR compliant
No card required
Unsubscribe anytime
Secure form
Get the full curriculum
Enter your details and we'll send the complete curriculum to your inbox. Free, no card required, unsubscribe at any time.
Check your inbox
Your first lesson is on its way. Welcome to the curriculum.
Why Market Education Hub
Education, not promotion
We do not execute trades, hold client money, or earn anything from your trading activity. Our only product is the quality of the education we provide.
Structured pathway
Lessons build on each other in a deliberate order. You will never be asked to read about leverage before you understand what a point is, or what a spread actually represents.
Plain English first
Every term is defined the first time it appears. Where jargon is unavoidable, we explain it inline — so the curriculum is accessible without ever being condescending.
Risk-first framing
Every lesson begins with what can go wrong, not what might go right. This is the discipline that separates educated traders from gamblers — and it is non-negotiable here.
Worked examples in real numbers
Every concept comes with both a winning and losing scenario, with the same weighting. Good outcomes don't come without the corresponding loss scenario, sized identically.
Updated quarterly
Markets evolve, rules change, products appear and disappear. The curriculum is reviewed every three months to keep examples current and tax commentary accurate.
Free, forever
No paywall, no upsell, no premium tier. The same curriculum is available to everyone who registers. If we ever change that, we will tell you in writing first.
Frequently asked
Questions we hear often
If your question is not here, the full curriculum includes a dedicated glossary and a longer Q&A module.
Is spread betting legal in the UK?
Yes. Spread betting on financial markets is a regulated activity in the UK, overseen by the Financial Conduct Authority (FCA). Providers must be FCA-authorised, adhere to conduct rules, and segregate client money. The product itself is legal for individuals aged 18 and over — but it is also high-risk, and you should fully understand the mechanics and the risks before participating.
How is spread betting different from CFD trading?
The economic exposure is very similar — both are leveraged derivatives that let you speculate on rising or falling prices without owning the underlying asset. The key differences are tax treatment (spread betting profits are currently tax-free for most UK individuals; CFD profits are subject to Capital Gains Tax) and the legal form (a spread bet is a contract for difference priced in pence per point, whereas a CFD is a contract for the difference in value). Costs, leverage limits and risk warnings are broadly comparable.
Can I really lose more than I deposit?
Yes. Because spread betting uses leverage, you only deposit a fraction of the full trade value as margin. If the market moves sharply against you — particularly outside trading hours or through a gap — your losses can exceed the margin you put down. A guaranteed stop-loss is the only way to cap this risk absolutely. We cover this in detail in Lesson 04.
Is spread betting the same as gambling?
For UK tax purposes, spread betting is treated as a betting activity — which is why profits are not currently subject to Capital Gains Tax. In substance, however, it is a leveraged financial derivative, not a game of chance. Outcomes are driven by market prices, not by random outcomes, and disciplined traders approach it with research, risk management and strategy — the same disciplines that apply to any form of trading.
How much do I need to start?
Minimum deposits vary by provider but are typically modest. The more important question is how much you can afford to lose — and that should be a figure you would be entirely comfortable losing in full. Most educators recommend risking only a small percentage of your account on any single position, and never trading with money you need for rent, bills or essentials. We do not recommend specific deposit sizes; we do recommend you complete the curriculum before funding any account.
Do I need to pay tax on my profits?
For most UK individuals trading spread bets in a personal capacity, profits are currently free from Capital Gains Tax and Income Tax. This is not absolute: if you trade very frequently, systematically, or as your primary occupation, HMRC may classify your activity as a trade and tax it accordingly. Tax rules can also change. We strongly recommend taking independent tax advice specific to your circumstances before relying on any tax outcome.
Begin with the basics.
Stay for the discipline.
The curriculum is free, structured and built to be read in the order it is presented. There is no shortcut, but there is a clear path — and it starts here.
Get the full curriculum