What is a spread bet?
A spread bet is an agreement between a client and a provider to exchange the difference between the opening and closing value of the bet at a future date – this date may or may not be specified depending upon what you are trading. You are speculating on the direction of the future price movements in an underlying instrument; you indicate an amount you want to bet on each point movement. Your profit or loss is simply the difference between the opening price and closing price of your bet, multiplied by your stake.