The History of Spread Betting in the UK

Spread betting is considered a newer form of investing on markets. In reality it has been present in the UK ever since the 1970s. During the 70s, a banker named Stuart Wheeler was interested in Gold.

He was intrigued by the price of Gold and how it fluctuated daily. At this time, investing in Gold was reserved for elite society. The reason for this is because a lot of money was needed to invest.

Wheeler could not trade Gold because of the cost like many others. However, he evaluated what the market value would be the next day. This turned into the development of a spread of numbers on the price.

The Spread in Spread Betting

The two numbers in the spread were low and high predictions. The numbers were high and low predictions of the future price of Gold. Wheeler presented this spread to his friends and spread betting began.

His friends would place wagers on either the bid price or ask price. Wheeler managed the bets and awarded profits at the end of the bet. He would also collect any losses bettors owed to him on the bet.

Spread betting further evolved and grew in the UK by the 1980s. Many spread betting firms were established and began creating spreads. The markets expanded and included many other markets besides Gold.

During this time, the number of people betting increased somewhat. The majority of people were still unaware of this type of investing. Lack of communication was one problem that limited spread betting.

The Internet and Spread Betting

The Internet was developed and completely changed communication. Nearly every home had a personal computer and access to information. This was the answer to the communication problems firms faced.

Spread betting firms were now able to share about this investing. Marketing campaigns increased and people learned about spread betting. The low cost of this investing made it more accessible to people.

This helped traders start their investing careers in spread betting. Although many more people were spread betting, the evolution went on.

Up to this point, a bettor called in one's bet which was tedious. Another problem was the spread often changed during a trader’s call. This was problematic as traders had bets planned but had to change.

Soon, technology advanced and online trading capabilities developed. This meant that spread bettors were able to make a bet directly. They made bets with UK betting firms directly through the Internet.

Spread betting grew very quickly from the 1970s up until now. Technology certainly helped move spread betting along faster. In fact, technology helped residents in the UK as well as worldwide.

Many individuals on a global level are now spread betting and trading. Many people are taking advantage of this innovative type of investing.

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