Spread betting may be well defined as a way of staking the result of an event where the accuracy of the staking determines the gain. It creates an active market for both parties involved although the outcome of all the events seems at first glance to favour one of the parties. The risk involved in this is well paying if the result supports you given that it is tax-free. Staking on the prices of such financial tools like shares, treasuries, indices and commodities can be done.
In sports like soccer, where betting is enormous of late, the general staking for any match is either a win for the away team, a draw or a win for the home team. In spread betting, however, the staking is done on two outcomes only; the price of the instrument rises, or it falls. It, therefore, calls for a keen study of the market trends and instrument for one to make a rational judgment on where to stake. When the market goes for your stake, it is a profit made else it is a loss. To stake one needs only a percentage of the value of your instrument and hence one