The Basics

• What is Financial Spread Betting?

  Financial spread betting is an efficient, tax-free alternative to share trading with a traditional broker. It allows you to speculate on share price movements, while avoiding any brokerage fees or commissions.

  Financial spread betting is based on a simple premise. If you think that a certain financial market or product will rise in value, then you buy the market/product. If you think that a certain financial market or product will fall in value, then you sell it.

  Buying a rising financial market or product: After buying a financial market or product that you believe will rise in value, then if your prediction is correct, you can sell the market or product for a profit. (If you are incorrect and the value falls, you make a loss.)

  Selling a falling financial market or product: After selling a financial market or product that you believe will fall in value, then if your prediction is correct, you can buy the market or product back at a lower price, for a profit. (If you are incorrect and the value rises, you make a loss.)

  TradIndex.com quotes a spread around the live, underlying market price and you can spread bet on whether this market value will rise or fall. When using Financial Spread Betting please remember that you own the “price” of the share and not the actual underlying share.

• What is a spread?

  The spread is the difference between the buying and selling price of a financial market or product. It represents the market-maker's potential profit or loss on a transaction.

  For example, say the FTSE Daily Cash has a price of 5894-5897 points. That means that you could sell for 5894 points and buy for 5897 points. The spread would be 3 points.

• I think Financial Spread Betting meets my personal investment objectives: How do I place a spread bet?

  If you believe that the FTSE Daily Cash will rise in value, then you request a price via the TradIndex website www.TradIndex.com. You will see the spread, e.g. 5894-5897 points, then you buy at 5897 for an amount (the minimum amount with Tradindex is £1) per point movement*. If the price moves up to 6014-6017 and you sell at 6014, you would realise a point profit of 6014 (the price you sell for) minus 5897 (price you bought for) = 117 points. As you have placed a spread bet of £1 per point, you would make a profit of £117 (£1 multiplied by 117). Obviously, had the market fallen in value you would have incurred a loss (opening price - closing price x stake).

  * You can decide on the amount you spread bet per point, based upon the bet size range currently offered by TradIndex.com, and the funds you have available to speculate with in your account

• How can I limit my risk when spread betting?

  To limit your risk, TradIndex.com insists on mandatory stop losses when you open a new position. This will help protect you if the price moves against you. In some cases however, due to market volatility it may not be possible to stop you out at your specified level. If this should happen then you will be stopped out at the next available price which may be outside of your stop level.

• What are the benefits of Financial Spread Betting?

  Financial spread betting offers significant advantages over more traditional forms of trading

  Financial Spread Betting is Tax free*

  The profits you make are free from UK capital gains and income tax*.

  Financial Spread Betting offers more freedom.

  Financial Spread Betting with Tradindex.com offers you the freedom and the flexibility to spread bet on a wide range of financial markets or products on one platform using one currency – GBP Sterling

  Ability to profit from Financial Spread Betting when markets fall as well as rise

  Financial spread betting allows you to go short (sell) in order to make a profit from a falling market by buying again later or at a lower price. In volatile market conditions, the ability to make a profit on both up and down swings can prove lucrative.

• What is geared trading?

  Financial Spread Betting offers the opportunity to make geared spread bets. For example, a deposit of £100 will allow you to have an exposure of £1,000 worth of shares. Gearing therefore maximises any potential profits, but carries a high degree of risk. Please remember that the markets can move against you as well as for you, you should only speculate with your money if you can afford to lose. Please ensure that you fully understand the risks involved with Financial Spread Betting.

• What are the minimum deposit and dealing sizes?

  TradIndex.com Financial Spread Betting accounts, can be opened with a minimum deposit of only £100. The minimum deal size is £1 per tic.

• What are your commissions or fees?

  Financial Spread Betting with TradIndex.com is free from commissions and fees, including stamp duty*

  *Tax law can be changed or may differ if you pay tax in a jurisdiction outside the UK

• How does financial spread betting compare to traditional share trading

  Do you trade shares? Try financial spread betting

  • No CGT tax on profits*
  • No stamp duty
  • Easy on your capital - instead of paying the full value of your share position, you are only required to pay a percentage deposit. This is commonly known as 'margin', and margin requirement can be as little as 5% of the total contract value.
  • Go 'short' to take advantage of bear markets - you can place a 'sell' bet on the price of a certain share falling.
  • Hedge an existing share portfolio
• What shares can I speculate on?

  Financial Spread Betting with TradIndex.com offers you the opportunity to spread bet on the following:

  UK shares - FTSE 100, FTSE 250, and other UK companies depending on its size and liquidity.

  American shares - we quote around 50 US shares, including the 30 Dow Jones stocks and a large number of NASDAQ 100 and S&P 500 shares.

  European shares - we quote the top stocks from Germany, Holland, Italy, Spain, France and Switzerland

• Got any questions?

  If you have any questions about Financial Spread Betting with TradIndex.com please contact us:

  Phone
  Customer Service: +44 (0) 20 7392 1494
  Dealing Queries: +44 (0) 20 7392 1430
  Marketing: +44 (0) 20 7392 1482

  Email
  If your question is about your account, or about depositing/withdrawing money, please send an e-mail to help@tradindex.com.
  If your question is about trading or about a specific trade (please include order number), please send an e-mail to customerservice@tradindex.com.
  If at any time you feel that you are not getting the answers you need please send an e-mail to csmanager@tradindex.com.

  Post
  Our postal address is:
  

  TradIndex.com
  Beaufort House
  15 St. Botolph Street
  London EC3A 7DT