Spread betting is a derivative product, which means you don’t take ownership of the underlying asset but speculate on whichever direction you think its price will move up or down
A forex spread bet enables you to speculate on the future price direction of a currency pair.A currency pair’s price being used on the spread bet is “derived” from the currency pair’s price on the spot FX market.
Your profit or loss is dictated by how far the market moves in your favor before you close your position and how much money you have bet per “point” of price movement.
Spread betting on forex is provided by “spread betting providers“.
Unfortunately, if you live in the U.S., spread betting is considered illegal. Despite being regulated by the FSA in the U.K., the U.S. considers spread betting to be internet gambling which is currently forbidden.
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