Spread betting, in easy words, can be described as a system of making a bet on a given range of trade in market. For instance the cost of a commodity may vary from point 4.49 to 4.50; it is the spread of market trade. If the variation is more than 1 point then the bet may rise up called rallying bet or may fall down called falling bet. The resultant of such betting is also known as spread. Thus, it can be termed as financial variation of the market trade along with the resultant of the bet made.

spread betting has been exempted from taxation on the gain of capital in some countries like UK. No stamp duty on betting is levied by the government hence what you win in bet is yours altogether, nothing is deducted from it. You have to pay only the service charges of the agent who provide you the opportunity to make a betting. It is different from trading in shares in stock market. Bettors put a bet on the trend of market instead of actually buying shares. One who knows the market trends can earn profits in spread betting. The new bettors should be aware of these implications of this trade.

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