Financial spread betting was invented in 1974 by stockbroker Stuart Wheeler, as a way of speculating on gold prices without the aggravation or expense of actually owning the gold.
Wheeler introduced the concept to some of his friends, deciding a sell price and a buy price and then allowing them to spread bet on whether the index would rise or fall over the following week. Stuart Wheeler went on to found IG Index.
Although losses incurred could be greater than a trader's initial outlay, it was immediately evident that one of the advantages of financial spread betting was the fact that it would allow traders to profit from a falling market as well as a rising one.
Boosted by the economic boom, other spread betting providers started to appear in the 1980s, with City Index among them. In the years that followed, spread betting would reach across every conceivable financial market, from equities to futures.
In the mid-1990s financial spread betting took a huge step forward, thanks mainly to the technology boom. Stock market activity became headline news, dotcom stocks went through the roof and spreads firms launched faster online trading platforms with new tools such as automatic stop loss orders.
In 2009 City Index launched ‘City Trading’, its first spread betting and CFD trading mobile app for iPhone, Android, Blackberry and Java.
It offers a range of features including instant updates on the latest prices and market movements, open and close positions as well as the latest investment news.
All this means that spread bettors today can finally trade whatever, wherever, whenever they want.
Spread betting and CFD trading carry a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors. Ensure you fully understand the risks involved and seek independent advice if necessary.
Content approved / provided by City Index Limited which is a company registered in England and Wales, number: 1761813. Authorised and Regulated by the Financial Services Authority. FSA Register Number: 113942.
Note - Spread Betting carries a high level of risk to your capital and you can lose more than your initial investment, it may not be suitable for all investors. Ensure you only speculate with money that you can afford to lose and that you fully understand the risks involved and seek independent financial advice where necessary.
'The Spread Betting Story', Review by D. Jones, last update: 4-May-11
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Risk Warning:
Spread Betting carries a high level of risk
to your capital and you can lose more than your initial investment,
it may not be suitable for all investors. Ensure you only
speculate with money that you can afford to lose and that you fully
understand the risks involved and seek independent financial advice where necessary.
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