Is Spread Betting for me?
Spread betting is a way of trading the financial markets without the financial commitment that investing in stocks and shares requires. You can take positions on which way the market moves on a variety of products, including commodities such as Gold or Crude Oil, currencies, shares and indices such as the FTSE 100. You can view our full list of products here.
If you have an interest in the financial markets and are looking for a cost-effective way to participate, then Spread Betting with Delta index trading as Ayondo Markets Limited offers many advantages:
- Low cost of entry. By using leverage, you can take a position on a particular product without committing the full amount.
- Tax benefits. Unlike traditional investing, Spread Betting is currently free from Capital Gains Tax†
- Transaction transparency. Choose to input your trade as actual nominal amounts so that you will know at all times how much money you are committing.
- Extremely competitive spreads and funding costs.
- An easy to use platform that is both elegant and intuitive.
- ***Free Guaranteed Stops. Guaranteed stops protect your trade from losing more than your initial investment. Unlike many of our competitors we offer this service for free.
Why is it called Spread Betting?
Spread Betting derives its name from the fact that you are speculating on the price movement of a particular product. The spread is the difference between the buying and the selling price. Spread Betting is also sometimes called Spread Trading and while the word ‘Betting’ has gambling connotations, the risk involved is flexible and adaptable to your own appetite. You could, for example, use Spread Betting as a replacement for traditional investing which is often considered on the lower end of the risk spectrum. Alternatively, if you prefer high risk investments, then you could use Spread Betting accordingly. However it is important to remember, that all investments carry some degree of risk and it is possible to lose more than your initial investment.
Spread Betting as part of your investment portfolio
There is no need for you to ever use a traditional broker again as you can mimic a long term buy and hold investment strategy using our variable margin function.
- Variable Margin allows you to choose how much leverage you use for each trade and puts you in full control.
- If you choose to fully fund your trade yourself then you will incur zero funding costs and still have all of the †tax benefits of Spread Betting, thus making the traditional broker redundant.
- Vary the leverage you use from trade to trade depending on your risk appetite for any particular product and your view of the current market landscape; e.g. for short term trading, using leverage can help amplify profits or increase losses with very little outlay. The decision is always yours.
- Whether you choose to fund the position yourself(zero funding costs) or fund as little as 1% of the trade value, our ultra-low funding costs is more competitive than the majority of our competitors.
To learn more about Variable Margin, click here.
Further your portfolio with Social Trading
If you prefer a little more guidance with your trading and investment decisions, then Social Trading might be right for you. Social Trading involves following expert ‘Top Traders’ and mimicking their trading activity. This is done automatically via state of the art technology, allowing you to be as little or as involved as you like. The whole process is extremely transparent and you can see your Top Traders’ performance in real time, allowing you confidently manage your portfolio of traders.
We have partnered with ayondo to bring you this next generation Social Trading functionality. For trading execution, ayondo uses Delta index trading as Ayondo Markets Limited’s innovative trading platform, TradeHub® so if you are a current Delta index trading as Ayondo Markets Limited client, you will already be familiar with the interface.
If you are an experienced trader or investor, then there are also opportunities to become an ayondo Top Trader yourself where you can make money from your regular trading activity.
To find out more about Social Trading, visit our Social Trading section.
***Please also note that free guaranteed stops do not apply to single equity markets