Spread Betting - if you want to get into share trading, but don't want to pay tax on your winnings Spread Betting could be the way to go.
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Unlike other share trading options, with spread betting you pay no tax on your winnings.
The spread is the difference between the price you can buy at and the price you can sell at. You would buy (go 'long') at the higher price if you think the market will rise, or sell (go 'short') at the lower price if you think it will fall.
As a spread bettor, you would obviously want the difference between the buy and sell prices – the 'spread' – to be as low as possible, so the market does not have to move far before you are in profit.