Spread Betting UK

Financial spread betting in the UK began in the 1970s by a banker. Stuart Wheeler presented a new concept of investing to his friends. Wheeler and his friends wanted to trade Gold on an exchange.

The high market price prevented them from getting into trading. Instead, Wheeler developed a way to make money on the price of Gold. This did not involve having to pay high prices or put money up front.

Using the day's market price of Gold, Wheeler developed a spread. The spread was a range that predicted the future price of Gold. The spread had a high and low number with a small range in between.

He presented the spread to friends and allowed them to make a wager. If they predicted the price would increase, they would buy the spread. However, they were to sell if they speculated the price to fall.

The buying and selling a spread began a new type of investing. This was the beginning of financial spread betting on instruments. Spread betting was easy to understand and bet so many began to bet.

Demand of Spread Betting

The concept of betting gained popularity quickly with UK residents. The demand to participate in betting led Wheeler to open a company. His company was appropriately called "Gold Investors Index".

Today, this company is one of the largest spread betting companies. It is currently called "IG Index" and is a very large betting firm.

In the UK the demand for financial spread betting increased. This caused more financial spread betting firms to be established. Some of these are City Index, Sporting Index, and Capital Spreads.

New Markets in Spread Betting

Brokers began offering spreads on different markets in the 1980s. These markets included commodities, sports, indices, and stocks. The variety appealed to many bettors, but trading was still limited.

Unfortunately, trading was still only accessible to professionals. It was also limited to the wealthy because of the lack of technology. There was no way to communicate information about spread betting.

The development of the Internet completely revolutionised betting. The Internet provided opportunities to trade electronically. More families had computers and a new group of clients were found.

By the end of the 1990s, brokers developed online platforms. These platforms allowed traders to take control of their trading. Traders could follow their trades and trading became more efficient.

UK residents who participate in betting have some clear advantages. Their trades are not subject to Stamp Duty as nothing is purchased. Instead there is a wager, but no physical ownership takes place.

One benefit is profits cannot be taxed by income or capital gains. Subsequently, all profits are retained by a trader with nothing owed.

Financial betting has increased so much that some have quit work. This is a risky adventure especially just starting out in the world. This demonstrates how popular financial spread betting has become.

Share and Enjoy :

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Comments & Ratings

---