CFDs Vs Spread Betting


Spread betting is one of the older tools out there that has been used as an off the books method of purchasing and trading shares. CFDs are a newer and more sophisticated tool. So how do they compare? We will discuss CFDs vs Spread betting here. CFDs and spread betting are both financial derivatives that trace the value of an underlying asset such as a share. They are both traded over the counter, with the main counter party in the transaction being the market marker. They are both quick tools to be able to trade against the movement of an asset and both offer a wide variety of markets to choose from. Plus they are both traded on a margin, somewhere in the 5-20% range depending on your broker and the policies they enforce.

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