What is the spread?

Answer 1

The spread is the difference between the "buy" and the "sell" prices of a particular spread betting market (such as equities, indices, currencies and even sports!)

For example spread betting company Spreadex may offer a "spread" of 5000-5002 on the UK 100 Daily (aka FTSE 100). You could buy at 5002 if you believe it will go above this level, or you can sell at 5000 if you think it will go below. The spread is effectively how the spread betting company makes its profits.

The spread will get wider if you bet on futures or utilise guaranteed stop losses.

If you need any more help on the terminology used in spread betting see this glossary of terms provided by Spreadex.

http://www.spreadex.com/betting/Financial/financial_spread_betting_glossary.aspx