What is Spread Betting
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Trading & Products

Spread Betting

A Tax-free* way to take advantage of rising or falling markets, created specifically for UK clients.

What is Spread Betting?

Spread betting is a tax efficient way of trading on the financial markets in the UK. You can spread bet on a wide range of products including FX, commodities and indices. Spread betting allows you to speculate on the price of the trading instrument by taking a position on whether you think the market will go up or go down.

What is financial spread betting?
Watch and Learn

Spread betting allows you to trade on margin, meaning you only need to put up a small amount of your capital as your initial deposit for each trade. Spread betting is a leveraged product, more information can be found on our Market Information Sheets.

Trading on margin is an important trading tool, as it allows you to take on positions larger than normal. However, it must be used with due care, larger positions will magnify your profits, but can also magnify your losses. Used in conjunction with our risk management tools such as stop loss, and limit orders. ‘stop-loss‘ order to manage your risk addition to that we also have an automated risk management system for maximum risk protection.

*UK Tax laws are subject to change without notice, please seek independent financial advice.

Market Description
DAX30German 30 Cash
EUR/USDEuro vs US Dollar
GBP/USDGreat British Pound vs US Dollar
XAUUSDGold Spot
UK100UK 100 Cash
 
Target Spreads
0.00009(0.9 pips)
0.00007(0.7 pips)
0.0001(1 pip)
0.0003(3 pips)
0.00009(0.9 pips)
 
Trading Margin
1:100
1:400
1:200
1:100
1:100
 

Why Spread Bet with GKFX?

Spread betting on the financial markets is a tax free* and simplified way to trade on currencies, equities, indices and commodities.
Spread betting with GKFX means you can also spread bet on the award winning MT4 trading platform.

spread betting trading screens

Our Advantages

All profits made in spread betting are exempt from UK Capital Gains Tax*. As spread betting is a derivatives product, it’s also exempt from UK stamp duty.

  •  
       

    Tax-Free*
    Trading

  •  
       

    Competitive
    Spreads

  •  
       

    Spread betting
    on MT4

 

GKFX offers 24/5 hours dealing on certain markets, giving you the flexibility to trade when you choose. You can find out more
about trading hours in our spread betting Market Information Sheet.

GKFX lets you to manage equities in your spread betting account, in order to Spread Bet equities please subscribe to the
products in the MyGKFX.

*UK Tax laws are subject to change without notice, please seek independent financial advice.

Spread Betting Example

We will use the Euro versus the US Dollar, EURUSD, as an example of how to trade FX on a Spread Betting Account.

First determine the standard lot size for EURUSDSB. If you do not know what the standard lot size is you can look it up on our Market Information Sheets.

In FX a pip is a unit used to measure a movement in price.
It is the smallest price change that an exchange rate can make e.g. one pip of EURUSD is 0.0001.

The ‘spread’ in spread betting represents the difference between ask price and bid price. If the markets move the way you bet, your profit will rise.
Similarly if the markets move the opposite way you bet, you will incur losses.

With GKFX you can trade from as little as £0.10 per pip on our spread betting accounts. To trade £0.10 per pip enter £0.10 per pip as your lot size. This is 0.10 x
the standard lot size of £1 per pip, which is £0.10, or 10 pence per pip.

£0.10 per pip x 5 pip = £0.50, or 50 Pence

If you bought EURUSD with a trade volume of 0.10, you would have made £0.10 for every pip the price of EURUSD went up.

If you bought EURUSD at 1.1000 and the price moved up 5 pips to 1.1005, you would have made a profit of 50 pence because £0.10 per pip x 5 pips = £0.50, or 50 pence.

£0.10 per pip x 5 pip = £0.50, or 50 Pence

If you sold EURUSD with a trade volume of 0.10, you would have made £0.10 for every pip the price of EURUSD went down.

If you sold EURUSD at 1.1000 and the price moved down 5 pips to 1.0995, you would have made a profit of 50 pence because £0.10 per pip x 5 pips = £0.50, or 50 pence.

 

Alternatively, if the prices in the examples moved in the opposite directions, you would have lost the amounts stated. On spread betting account your profit will always be in GBP.

Market
Price
Standard lot size
Min. Trade size
Deal
Price
Market Movement if you close your position
( 1.0984 – 1.0986 olsun market)
Gross tax-free* Profit
Alternatively
eu flag EUR /USD usa flag
spread betting buy and sell order uk
£1 per pip
10 pence per pip as 0.10 lot size
Sell £10 a point at 1.1000
spread betting buy and sell order
Sell Price 1.1000 - Buy Price 1.0986 = 0.0014
£14 per point
£14 * 10 = £140
If the price moves in opposite direction
that profit will be your gross loss
 

RISK WARNING

All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors and you can lose more than your initial deposit. Please ensure that you fully understand the risks involved, and seek independent advice if necessary. ​Apple, iPad, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.See our full Risk Warning and Terms of Business for further details.

Our products are traded on margin and carry a high degree of risk. Losses can exceed your initial deposit.