Spread betting is a tax-free* derivative product available to traders in the UK. When making a spread bet you don’t buy or sell any asset physically, you merely speculate on the price direction of the underlying asset. Spread betting is a leveraged product, meaning your profit (and loss) can be magnified.
For more information on spread betting click here.
CFDs are a similar product, but there are key differences. Click here for further details.
*Note that tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.