Example Here is an example to help you understand spread betting: If someone predicts that their height in inches is "somewhere between 60 inches and 66 inches". If you have chosen to sell at 60 inches, well then congratulations! You would have won 6 times your stake (60 inches – 54 inches) = 6 x £/€1 = £/€6. This is because with spread betting you choose your stake and your stake multiplies by how many times you were right or wrong. This means that clients can open or close a bet to lock in a profit or a loss. Control Your Risk – Clients can control their own risk by the stake they choose. Why are two prices quoted in spread betting? The difference between the high price and the low price is called the "spread". If a client wants to sell they will choose the first lower price or if they want to buy they will choose the second higher price.
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