Index spread betting is an increasingly popular way of trading.
It allows you to trade a stock market as a whole rather than individualshares. Index spread betting gives the trader large moves more quickly, making it ideal for short-term trades. However, spread bets on indices can be held for as long as required as the position ‘rolls over’ on expiry.
An index consists of a number of companies listed on a particular stock market. For example, the UK 100 index (otherwise known as the UK Index 100) is derived from the largest 100 listed companies in the UK. Other markets available for index spread betting include the US S&P 500, German DAX and French CAC. Accendo Markets provides these and many other global index prices for you to trade, making spread betting an extremely popular tax free trading* tool.
Whether you’re a seasoned trader or new to index spread betting, indices may be a convenient way to trade. You can find our more about spread betting with our spread betting guide. Index spread betting works by selecting a deal size on a ‘per point’ basis. You might decide to ‘go long’ on the UK 100 index to the value of £20 per point, in which case you profit or lose £20 for each point that the index moves up or down. You can use index spread betting to target absolute returns, or use it to hedge other positions (e.g. your share holdings).
You can open index spread betting positions on your trading platform, which Accendo Markets can assist you with using. As an alternative, you can contact your trader at Accendo Markets to place the trade.
*Under current UK tax law. Tax laws may be subject to change.