Spread betting is a simple, tax efficient way of speculating in financial markets. With Cantor Index, you can bet on daily, weekly and quarterly futures bets as well as daily rolling bets which resemble the cash price of the underlying market.

Example of a 'buy' or 'long' spread bet

The Cantor Index quote on the December UK 100 contract is 5936 - 5940. You think that the price of the UK 100 will rise so you buy £10 at the offer price of 5940. Some weeks later, your prediction turns out to be correct and our new quote is 5995 - 5999. You close the position by selling at the bid price of 5995 making a profit of 55 points (5995 - 5940) or £550.

However, if the UK 100 had fallen and our new quote was 5890 - 5894 you would lose 50 points (5940 - 5890) or £500.

Example of a 'sell' spread bet

The Cantor Index quote on the December UK 100 contract is 5936 - 5940. You think that the price of the UK 100 will fall so you sell £10 at the bid price of 5936. Some weeks later, your prediction turns out to be correct and our new quote is 5894 - 5898. You close the position by buying at the new offer price of 5898, making a profit of 38 points (5898 - 5936) or £380.

However, if the UK 100 had risen and our new quote was 5997 - 6001, you would lose 65 points (6001 - 5936) or £650.

Spread betting allows you to profit from falling markets by 'going short' or making a bet that the price of an instrument will fall.

You can place a stop order to limit your risk.