| Samuel & Co Trading |
The Capital Circle |
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| Trading education | UK market guide | 23 September 2026 |
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Speak to an expert
Considering spread betting?
Start with the real mechanics.
Talk to one of our experts about how spread betting works, the risks involved and whether it could be a relevant trading tool for you. You can also find out more about IG through the link below.
Information only. Eligibility and applicable terms apply.
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The short version
The attraction is flexibility. The test is discipline.
Spread betting lets UK traders take a view on a market rising or falling, choose a stake per point and access the market with a deposit rather than the full notional value. That can make it a flexible trading structure. It also means a small market move can have a meaningful effect on your account.
In this note, I want to separate the useful features from the sales pitch. Spread betting can be a practical tool for a trader with a defined process. It is not ownership of an asset, a shortcut to returns or a reason to take more risk than a plan allows.
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| 01 / What you are actually doing |
A spread bet is a position on price movement. You decide whether to buy or sell, select a stake such as £2 per point, and your profit or loss changes with the number of points the market moves. You do not take ownership of the underlying share, index, currency or commodity.
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Simple P&L arithmetic
£2 per point × a 25-point move = £50 of profit or loss before relevant charges. A £2 stake does not mean your risk is limited to £2. Your exposure is the stake multiplied by the move.
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That direct link between a market move and cash outcome is why position sizing needs to come before the order. Work out the pound risk at the invalidation point first, then decide whether the stake makes sense.
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| 02 / The advantages, properly framed |
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A two-way market view
You can take a long view when you expect a rise or a short view when you expect a fall. That can make the structure useful when your market thesis is bearish as well as bullish. A short position still carries risk, including sharp adverse moves and gaps.
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Granular stake sizing
The stake-per-point format gives you a clean way to translate the distance to your exit level into a pound amount. It can help make risk more explicit, provided the chosen size is small enough for the account and the plan.
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Broad market access from one trading account
Providers can offer exposure to indices, shares, currencies, commodities and more in the same trading environment. IG states that its UK platform offers access to more than 16,000 markets. The benefit is breadth; the discipline is to trade only markets you understand.
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A UK tax treatment that may be favourable
HMRC says a person placing a spread bet is not normally carrying on a trade, so they are not normally taxable on the profits and cannot claim relief for losses. That can be relevant to after-tax outcomes, but it is not a trading edge and it should never be the sole reason to use the product. Tax law can change and personal circumstances matter.
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Retail safeguards and risk tools
FCA rules require protections for UK retail clients in this product category, including limits on leverage and negative-balance protection. These safeguards do not remove the risk of loss. Read the provider’s current terms, margin rules and order-execution policy before you trade.
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| 03 / The part that needs more attention |
Leverage is not free buying power. It magnifies the financial effect of a move because the position reflects the full market exposure while only a portion is committed as margin. A well-researched view can still lose money if the position is too large, the timing is wrong or the market gaps through an intended exit.
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Current IG retail risk disclosure
69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. Consider whether you understand how spread bets and CFDs work and whether you can afford the high risk of losing your money.
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Also understand the trading costs. Depending on the market and position, these can include the bid-offer spread, overnight funding for positions held beyond the daily cut-off, and charges associated with particular order types or markets. Costs are part of the trade plan, not an afterthought.
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| 04 / My practical checklist |
Before using any leveraged product, I would want a trader to be able to answer these questions clearly:
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What does one point mean in pounds for this market, and what is the total pound loss if my exit is reached? |
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What are the applicable spread, funding, margin and execution terms for the specific position I am considering? |
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Would I still take this trade if the tax treatment were irrelevant? If not, I have not built a trading thesis. |
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Want to understand the route properly?
Talk it through before you trade it.
If you would like to speak to one of our experts, understand the practical mechanics or find out more about IG, use the link below. This is an opportunity to explore the product, not a promise of suitability or a trading outcome.
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Important risk & tax notice
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
This content is for educational and general information purposes only. It is not personal financial, investment, legal or tax advice, and it is not a recommendation to trade. Tax treatment depends on individual circumstances and may change. Seek independent tax advice where appropriate. Trading, spread betting and CFDs carry risk and may not be suitable for everyone.
Risk disclosure and source facts checked 23 September 2026. IG's retail loss percentage is provider-specific and should be refreshed before sending if the campaign is used later.
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