Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Crude oil remains at the centre of global market attention as shifting geopolitics and uncertain peace talks continue to shape investor sentiment. With supply risks, sanctions, and policy decisions all in play, traders are watching closely to see whether oil can stabilise or if fresh volatility lies ahead.

Cease-fire uncertainty underpins crude oil prices

Crude oil prices strengthened on Friday as hopes for a quick resolution to the Russia–Ukraine conflict began to fade. Brent crude rose to $67.85 per barrel, while WTI crude climbed to $63.74, leaving both benchmarks on track to end the week in positive territory.

Our research desk notes that optimism around peace talks has cooled, with efforts to arrange a summit between Presidents Putin and Zelensky facing continued obstacles.

Disagreements over Ukraine’s future security guarantees remain a sticking point, with Moscow pushing for influence over any defence framework. The stalling negotiations have revived concerns about tougher sanctions on Russia, which could tighten supply conditions and provide further support to oil prices.

Technical analysis

The crude oil market has displayed wide swings throughout 2025, ranging from April’s trough at $55.11 to July’s rally peak near $77.90. After a strong mid-year surge, momentum has cooled, and prices are now attempting to stabilise around the $63 level.

Short- and medium-term moving averages (5, 10, 30) still reflect a bearish structure after recent declines. However, the flattening of shorter-term averages suggests that downward momentum may be losing strength.

Picture: Crude oil trades near $63.37, stabilising after recent declines with support emerging above $60 and a flattening MACD signal, as shown on the VT Markets app.

The MACD, which remains below the zero line, continues to show weak momentum but offers early signs of a base forming as the histogram narrows.

In the near term, resistance is expected around $66–67, aligned with recent swing highs and clustered moving averages. A breakout above this level could trigger a retest of $70 or higher.

On the downside, immediate support stands at $60, with stronger protection near April’s low of $55. As long as prices hold above $60, crude may be carving out a consolidation zone. A break below, however, would increase the risk of a deeper retracement.

Overall, crude oil remains in a watchful consolidation phase, with traders closely tracking US inventory reports, OPEC decisions, and demand trends in key economies for the next major directional cue.

Cautious forecast

Looking ahead, crude oil prices are likely to remain highly sensitive to geopolitical developments. If Russia–Ukraine talks continue to falter, WTI crude could retest the $67.00–$70.00 zone, with supply concerns keeping an upward bias intact.

That said, a breakthrough in negotiations would likely deflate the current risk premium, potentially dragging prices back toward the $60.00 support area. Traders should also be mindful of secondary drivers such as Chinese demand recovery, seasonal refinery activity, and currency fluctuations, all of which could amplify volatility.

While the broader trend remains cautious, the market’s underlying risk profile leans to the upside in the near term. Any escalation in geopolitical tensions or disruption to supply chains would likely act as a strong catalyst for higher oil prices, reinforcing the need for close monitoring of global events.

Click here to open account and start trading.

When comparing ways to trade financial markets without owning the underlying asset, many traders look at spread betting vs CFD trading. Both allow you to speculate on rising and falling prices across forex, indices, commodities, and shares, but they differ in taxation, accessibility, and trading style. This guide breaks down the main differences and similarities, supported by real-life examples, so you can decide whether CFD trading or spread betting is the right choice for your strategy.

What is CFD Trading?

A Contract for Difference (CFD) is an agreement between a trader and a broker to exchange the difference in an asset’s price from the time the trade is opened until it is closed. This means you can profit from both rising and falling markets without owning the asset, while using leverage to control a larger position with a smaller deposit.

How it works

• Profit calculation: Difference between entry and exit price, multiplied by the number of contracts.
• Leverage: You only need a margin deposit, which magnifies gains and losses.
• Markets: Forex, CFD shares, indices, precious metals, CFD bonds, and crypto.

Example: A trader buys 10 contracts of gold (XAUUSD) at $3,300 and sells at $3,320. The $20 move multiplied by 10 contracts equals a $200 profit. If gold had dropped to $3,280 instead, the same trader would have lost $200.

What is Spread Betting?

Spread betting is another derivative product, most popular in the UK and Ireland. Instead of buying contracts, you stake a certain amount per point of price movement, which means your profit or loss depends directly on how many points the market moves in your chosen direction, magnified by the leverage applied.

How it works

• Profit calculation: Your stake × number of points the market moves in your chosen direction.
• Leverage: You only deposit margin, amplifying profits and losses.
• Markets: Similar to CFDs, including forex, indices, commodities, and shares.

Example: A trader places a spread bet of £5 per point on the FTSE 100 at 7,500. If the FTSE rises to 7,520, the gain is based on the point movement of the FTSE 100: 20 points × £5 = £100 profit. If the FTSE falls by 20 points, the loss is also £100.

Spread Betting vs CFD Trading: Key Differences

While both products work in similar ways, there are fundamental differences between spread betting and CFD trading. The table below highlights the most important differences in taxation, availability, and trading style.

1. Tax treatment

With CFDs, any gains are typically subject to capital gains tax, but losses can be offset against other gains, offering a tax advantage in certain situations. Spread betting, by contrast, is tax-free in the UK and Ireland, which makes it especially appealing to retail traders seeking efficient speculation.

2. Accessibility

CFDs are available across most global markets, making them the standard choice for international traders. Spread betting is restricted mainly to the UK and Ireland due to its regulatory framework and tax treatment.

3. Profit calculation

CFDs calculate profit or loss based on the size of the contract traded and the difference between the opening and closing price. Spread betting simplifies this by using a stake-per-point system, which makes it straightforward for beginners to understand.

4. Costs

With CFDs, you may face both spreads and commissions depending on the asset class, plus overnight financing fees. Spread betting usually has costs built directly into the spread, which can be wider than CFD spreads but easier to calculate.

5. Regulation

CFDs are offered under various regulators worldwide, from the FCA in the UK to ASIC in Australia and CySEC in Europe, giving traders a wide choice of platforms. Spread betting, on the other hand, is regulated almost exclusively in the UK and Ireland.

6. Trading style suitability

CFDs are often used not just by retail traders but also by institutions as a hedging tool, for example protecting a stock portfolio against potential downturns. Spread betting is mostly used by retail traders for short-term speculation rather than long-term strategies.

7. Transparency of costs

CFD brokers typically show commissions, financing charges, and spreads separately, which can help traders understand where fees are coming from. Spread betting wraps everything into the spread itself, which is simpler but can make it harder to judge the real cost of trading.

These differences highlight why the choice between CFD trading and spread betting often comes down to personal circumstances. Tax efficiency makes spread betting more appealing for UK traders, while CFDs offer global availability and flexibility for hedging strategies. Understanding how profits are calculated, how costs are charged, and the transparency of each product helps traders decide which is best for their individual needs.

Similarities Between CFD Trading and Spread Betting

Despite their differences, both products share important features that appeal to active traders. The table below highlights the main similarities.

Both CFD trading and spread betting share these core features, making them attractive to traders who want flexible ways to participate in the financial markets. The ability to trade with leverage, take long or short positions, and access global instruments through modern platforms explains why both products are widely used for short-term trading strategies.

CFD Trading or Spread Betting: Which One is Best for Me?

The choice between CFD trading or spread betting depends on where you are and how you trade. Spread betting suits UK and Irish traders seeking tax-free profits and simplicity, while CFDs are better for global traders who want transparency and flexibility. Below are the key reasons why each option may be right for you.

Choose spread betting if:

• You are based in the UK or Ireland, where spread betting profits are tax-free.
• You prefer a simple stake-per-point model to calculate profit and loss.
• You want to speculate on short-term price movements without capital gains tax.

Choose CFD trading if:

• You are outside the UK and Ireland where spread betting is unavailable.
• You need a flexible product suitable for both speculation and hedging.
• You want access to global markets through a widely regulated trading product.

New to trading? Discover how to get started as a beginner.

In Summary

Both CFDs and spread betting allow you to speculate on financial markets without owning the underlying asset, but the choice depends on your location and trading goals. Spread betting is best suited for UK and Irish traders who want tax-free profits and a simple stake-per-point model, while CFDs provide global availability, transparent pricing, and the flexibility to hedge or speculate. Whichever you choose, it is essential to manage leverage carefully and trade with a clear strategy.

Start CFD Trading or Spread Betting Today with VT Markets

If you are ready to explore financial markets, VT Markets offers a secure and regulated platform with competitive spreads, access to global markets, and advanced trading tools such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Our Help Centre is also available to guide you through account setup, platform features, and trading support whenever you need it.

Open a live account today and start trading CFDs or spread betting with VT Markets.

Not ready for the live market yet? Try a VT Markets demo account in a risk-free environment and practice with virtual funds until you are prepared to trade live.

Frequently Asked Questions (FAQs)

1. Is CFD trading better than spread betting?

Neither is automatically better. CFDs are available worldwide and suitable for both hedging and speculation, while spread betting is restricted to the UK and Ireland but offers tax-free profits.

2. Do both CFDs and spread bets offer leverage?

Yes. Both products use leverage, allowing you to control larger positions with a smaller deposit, but this also magnifies potential losses.

3. Which is riskier: CFD trading or spread betting?

Both carry similar risks due to leverage and volatility. The real risk depends on your strategy, position sizing, and how you manage stop-losses.

4. Can I trade both CFDs and spread bets with the same broker?

Yes. Some brokers, such as VT Markets, offer access to both, giving traders the flexibility to choose the product that suits them best.

5. Which offers more transparency: CFDs or spread betting?

CFDs provide a clearer breakdown of costs, including spreads, commissions, and financing fees. Spread betting bundles costs into the spread, which is simpler but less transparent.

6. Do I pay overnight fees on both CFDs and spread bets?

Yes. Financing charges apply if leveraged positions are held overnight in both CFDs and spread bets. These costs vary depending on the broker and the asset traded.

7. Can beginners trade CFDs or spread bets?

Yes, but it is important for beginners to start small or use a demo account. Both products involve leverage, which can lead to losses greater than your initial deposit if not managed carefully.

8. Are profits from CFDs or spread betting guaranteed?

No. Both products carry risk, and while leverage can magnify gains, it can also increase losses. Success depends on skill, strategy, and risk management.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The euro is in the spotlight as traders look to upcoming eurozone PMI data for fresh clues on the region’s recovery. With sentiment still fragile and mixed signals coming from industry and consumers, markets are weighing whether the latest surveys will confirm momentum or highlight renewed weakness.

Market focus shifts to eurozone recovery signals

The euro slipped on Thursday as traders took a cautious stance before the release of the latest eurozone purchasing managers’ index (PMI) data – a report widely viewed as a barometer of the region’s economic recovery.

EUR/USD dipped 0.2% to 1.1631, with market sentiment subdued amid concerns the results may underwhelm expectations.

According to our research desk, PMIs have recently painted a stronger picture compared with other forward-looking indicators.

However, a weaker reading could realign them with signals pointing to slower growth momentum.

Investors have been hoping that the surveys would reinforce the recovery story, but optimism remains fragile due to lacklustre industrial production and softer consumer confidence figures.

Technical analysis

EUR/USD has been climbing steadily from its February low around 1.0210, peaking at 1.1829 in July before moving sideways in a consolidation phase.

At present, the pair trades close to 1.1632, staying comfortably above the 1.1500 support area.

EUR/USD trades near 1.1633, rebounding from February lows with support from key moving averages and a near-zero MACD, as shown on the VT Markets app.

Short-term moving averages (5, 10, 30) are levelling out, suggesting diminished momentum, while the MACD indicator hovers around the zero line, signalling indecision following the earlier strong rally.

Immediate resistance is located between 1.1700 and 1.1830, with a breakout above this zone likely to revive the broader bullish trend.

Conversely, a fall beneath 1.1500 would shift the outlook bearish, opening the door toward 1.1350.

Until then, EUR/USD remains range-bound, with traders awaiting fresh cues from economic data and European Central Bank guidance.

Cautious forecast

Should PMIs come in softer than expected, EUR/USD could slide back towards the 1.1500 mark, with ripple effects potentially extending to bond and equity markets as investor confidence weakens.

Such an outcome would reinforce the view that eurozone growth is losing steam, prompting markets to reassess expectations for European Central Bank policy tightening.

On the other hand, stronger-than-expected figures may lift the pair towards 1.1750.

A decisive break higher could encourage fresh buying interest, yet sustaining momentum above 1.1800 may prove difficult without broader macroeconomic support, such as firmer industrial output, stronger consumer sentiment, or clearer signals from policymakers.

For now, traders remain cautious, with the PMI release set to act as a key trigger for short-term direction.

Click here to open account and start trading.

Why can a single speech from the Federal Reserve send global markets into a frenzy? For traders, the annual Jackson Hole symposium in Wyoming is one of those moments where words carry the weight of billions.

This year, all eyes are on Chair Jerome Powell’s address on 22 August, which comes just after the release of the July FOMC minutes. With inflation cooling to 2.7% year on year, but producer prices running hotter than expected, markets are pricing in a possible 25 basis point rate cut in September.

For traders, this can feel like trying to read tea leaves. Yet understanding the Fed’s signals is less about prediction and more about preparation.

Why the Jackson Hole symposium matters

The Jackson Hole symposium is not just another economic conference – it is the stage where central bankers, academics, and policymakers set the tone for global markets.

Hosted each August by the Federal Reserve Bank of Kansas City, the event has a track record of producing market-moving speeches. For traders, it is less about the setting in the Wyoming mountains and more about the signals given.

Think of the Fed as a captain steering a large ship through uncertain waters. Interest rate decisions are the adjustments to the wheel, and Jackson Hole is when the captain explains where the ship is heading next.

For retail traders, the lesson is simple: Jackson Hole offers clues about future rate decisions. Whether the Fed signals that cuts are imminent or that caution still rules the day, these cues directly shape price action in equities, USD currency pairs, and safe-haven assets.

The July FOMC minutes: What they revealed

The July meeting of the Federal Open Market Committee (FOMC) left interest rates unchanged at 4.25%–4.50%, but the minutes released on 20 August gave traders a peek behind the curtain.

They showed a committee still divided: most members preferred to keep policy steady, but a minority pushed for cuts, citing a softer labour market.

Inflation data has also painted a mixed picture. Consumer price growth cooled to 2.7% year on year, edging closer to the Fed’s 2% target. Yet producer prices rose faster than expected, reminding markets that underlying pressures remain.

This tug-of-war between cooling consumer inflation and sticky business costs is central to the Fed’s dilemma.

For traders, the minutes were a reminder that policy isn’t on autopilot. Markets responded cautiously, with equities ticking higher and the dollar slipping slightly. But the bigger question is what happens next – and that’s where Powell’s Jackson Hole speech takes centre stage.

Spotlight on Jackson Hole and Powell’s speech

Every year, one speech dominates the Jackson Hole symposium: the remarks from the Fed Chair. On Friday 22 August, Jerome Powell will deliver his outlook on the economy, and traders will be listening for every nuance.

The theme of this year’s gathering is “Labour markets in transition”, a subject closely tied to the Fed’s dual mandate of stable prices and maximum employment.

With wage growth slowing and job openings shrinking, Powell faces the challenge of balancing progress on inflation with signs of softening in the labour market.

Why does this matter for markets? History shows that Jackson Hole speeches often set the tone for months ahead. A hawkish Powell in 2022 sent the S&P 500 tumbling within hours, while a more dovish message in 2023 sparked rallies in gold and tech stocks.

This year, even a subtle hint about the size or timing of rate cuts could swing equities, forex pairs, and commodities.

For traders, the key is not just what Powell says, but how markets interpret his words – sometimes it’s the tone, not the text, that moves prices.

How Fed signals impact your trades: Equities, forex, and gold

Understanding how the Fed’s words affect markets is crucial for traders.

Equities: Lower interest rates often support stocks because borrowing costs fall, and companies can invest more. If Powell hints at a rate cut, indices like the S&P 500 or Nasdaq may rally. Conversely, a hawkish tone can trigger sell-offs, particularly in growth stocks sensitive to interest rates.

Forex (USD pairs): A dovish Fed typically weakens the US dollar. For example, EUR/USD may rise as traders buy euros against a softer dollar. Hawkish signals, on the other hand, can strengthen the USD, pushing pairs like USD/JPY higher.

Gold: Often seen as a safe haven, gold benefits when rates fall or the dollar weakens. A dovish speech can lift gold prices, while hawkish commentary may put pressure on the metal.

Mixed data, such as cooling CPI but hot PPI, can swing markets 1–2% within hours. Traders should be ready for quick moves and use the right risk management tools.

Practical tips for managing trades during volatility

Trading around major Fed events like Jackson Hole requires preparation and discipline. Here are some practical steps for non-professional traders:

Avoid over-leverage: Volatility can widen spreads and amplify losses. Stick to small positions – risking 1–2% of your account per trade is safer.

Use pending orders: Instead of chasing sudden moves, set buy or sell stops at key levels. This lets the market come to you.

Monitor correlations: EUR/USD often moves inversely to the dollar index (DXY), while equities react to risk sentiment. Understanding these links helps in planning trades.

Prepare for both scenarios:

• Dovish Powell: consider EUR/USD long positions or tech stock exposure.
• Hawkish Powell: USD/JPY long positions or hedging gold holdings may be appropriate.

Set stop-losses and take profits: Predefine exit points to protect gains and limit losses.

Conclusion

Jackson Hole is more than just a conference – it is a signal flare for traders, indicating the likely direction of Fed policy and market sentiment. Understanding Powell’s tone and the subtle hints in his speech can make the difference between a reactive trade and a prepared strategy.

The key lesson is simple: trading is less about predicting the Fed perfectly and more about preparing for both outcomes. By recognising how dovish or hawkish signals affect equities, forex, and gold, you can position your portfolio with discipline and confidence.

Start preparing your strategy today – and if you’re ready to act on opportunities in USD pairs, indices, and gold, consider opening a live account with VT Markets to execute trades efficiently and access professional tools designed for both beginners and seasoned traders.

Dear Client,

As part of our commitment to provide the most reliable service to our clients, there will be maintenance this weekend.

Maintenance Details:

Please note that the following aspects might be affected during the maintenance:
1. The price quote and trading management will be temporarily disabled during the maintenance. You will not be able to open new positions, close open positions, or make any adjustments to the trades.
2. There might be a gap between the original price and the price after maintenance. The gaps between Pending Orders, Stop Loss, and Take Profit will be filled at the market price once the maintenance is completed. It is suggested that you manage the account properly.
3. During the maintenance period, VT Markets APP will not be available. It is recommended that you avoid using it during the maintenance.
4. During the maintenance hours, the Client portal will be unavailable, including managing trades, Deposit/Withdrawal and all the other functions will be limited.

The above data is for reference only. Please refer to the MT4/MT5 software for the specific maintenance completion and marketing opening time.

Thank you for your patience and understanding about this important initiative.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Spread betting is a trading method that lets you speculate on financial markets without owning the asset itself. It is especially common in the UK, where traders benefit from tax advantages and flexible opportunities to trade both rising and falling markets. Traders can profit from both rising and falling prices, making it attractive in volatile markets. However, like all leveraged products, it comes with risks that need to be carefully managed. This guide explains what spread betting is, how spread betting works, its benefits, risks, and a real-life example so you can understand it clearly before considering it as a trading method.

What Is Spread Betting?

Spread betting is a popular type of derivative trading where traders speculate on whether the price of a financial instrument, such as forex, indices, precious metals, or shares, will rise or fall. Instead of purchasing or owning the actual asset, you place a stake per point of movement in the market.

For example, if you believe the FTSE 100 index will rise, you place a “buy” bet. If the index increases by 50 points and your stake is £10 per point, your profit would be £500. If it falls by the same amount, your loss would be £500 instead. The amount you risk per point is known as your initial stake, and managing this initial stake is crucial because your potential losses can exceed it depending on market volatility.

This makes spread betting different from traditional investing, where you hold the underlying asset. With spread betting, you are purely speculating on price movements, allowing you to take advantage of both rising and falling markets.

How Does Spread Betting Work?

When you buy shares in a company like Microsoft, you physically own part of that business and can only profit if the share price rises. Spread betting works differently. You never own the underlying asset — instead, you speculate on the price movements of the underlying market. In spread betting, you are placing a bet on whether the market will go up or down, and your spread betting position is based on the underlying market price.

This approach means you can benefit from both rising and falling prices, but your profit or loss depends entirely on how far the market moves in your chosen direction. To trade effectively, you need to understand a few key mechanics that determine how spread betting works in practice:

1. The Spread

The spread is the difference between the buy and sell price quoted by the broker, and it represents the cost of entering a trade. For example, if the FTSE 100 is quoted at 6,998 to sell and 7,002 to buy, the spread is four points. If you open a long position at 7,002, the market must rise above that level by at least four points before you begin to make a profit. The narrower the spread, the lower your trading costs, which is particularly important for short-term traders.

2. The Bet Size

Bet size refers to the amount you stake per point of movement in the market. The higher your stake, the greater your profit or loss for every point the market moves. For instance, if you place a bet of £10 per point on GBP/USD and the price rises by 40 points, you earn £400, while a 40-point fall would mean a £400 loss.

Profit or loss is calculated by multiplying your stake per point by the number of points the market moves, whether in your favour or against you. Choosing an appropriate stake is crucial, as it allows you to manage your risk while staying exposed to market opportunities. 

3. The Bet Duration

Unlike options or futures contracts, spread bets do not have a fixed expiry date, which gives you flexibility over how long you keep a trade open. Some traders prefer short-term positions, holding them for only minutes or hours to capture quick price changes. Others keep trades open for days or even weeks to ride longer-term market trends. The longer you hold a position, however, the more you may incur financing charges if it remains open overnight.

4. Long and Short Trading

One of the most attractive features of spread betting is the ability to profit in both rising and falling markets. If you believe the price of Tesla shares will increase from $250 to $270, you go long by placing a buy bet and profit from the upward move.

On the other hand, if you expect the S&P 500 to fall, you go short by placing a sell bet, and a 30-point drop with a £5 per point stake would give you a £150 profit. This flexibility makes spread betting suitable for trading during volatile conditions when markets swing in both directions.

5. The Leverage

Leverage allows you to control a much larger market exposure with only a small deposit, magnifying both potential profits and potential losses. For example, with leverage of 1:20, a deposit of £500 gives you access to £10,000 worth of EUR/USD. A market movement of just 1% would therefore result in a gain or loss of £100, which is 20% of your initial deposit. This magnifying effect is what makes spread betting appealing to many traders, but it also highlights the importance of using leverage carefully.

6. The Margin

Margin is the deposit required to open and maintain a leveraged trade. If a broker requires a 5% margin on a £20,000 position, you need £1,000 in your account to open that trade. If the market moves against you and your account balance falls below the margin requirement, you may face a margin call, or your broker may close your position automatically to limit further losses. Understanding margin is essential to managing risk effectively in spread betting.

Example of a Spread Bet Trade

Here’s a betting example that illustrates how spread betting markets work. Imagine you are trading gold. The market is quoted at 1,900 to sell and 1,902 to buy. Believing the price will rise, you enter a buy position at 1,902 with a stake of £10 per point. A few hours later, gold moves to a closing price of 1,922, which is a 20-point increase.

Profit scenario:

If gold rises to a closing price of 1,922, you decide to close your position. The market has increased by 20 points (1,922 – 1,902). With a stake of £10 per point, this gives you a profit of £200 (20 × £10), excluding any additional costs such as overnight financing.

Loss scenario:

If instead gold falls to a closing price of 1,882, you close the trade at a loss. The market has dropped by 20 points (1,902 – 1,882), and with a stake of £10 per point, this results in a £200 loss (20 × £10), again not including any additional costs.

This example highlights how profits and losses in spread betting are tied directly to market movements. While easy to calculate, it also shows why effective risk management is essential.

What Are the Benefits of Spread Betting?

Spread betting offers several advantages that make it attractive to traders, especially those in the UK. From tax efficiency to trading flexibility, here are some of the main benefits:

1. Tax advantages (UK spread betting)

In the UK, spread betting profits are typically free from capital gains tax and stamp duty, making it more cost-efficient than traditional investing. However, tax rules depend on individual circumstances and may change.

2. Leverage for bigger opportunities

Spread betting allows you to put down a relatively small deposit (margin) to control a much larger position. For example, with 1:20 leverage, a £500 margin can give you exposure to £10,000 worth of gold. This magnifies profit potential, but also increases risk.

3. Ability to trade long or short

Unlike traditional share dealing where you only profit if prices go up, spread betting lets you speculate in both directions. If you expect oil prices to rise, you can go long; if you expect them to fall, you can go short. This flexibility is particularly useful in volatile markets.

4. Access to global markets

From one account, you can place bets on a wide range of markets including forex, indices, shares, commodities, and even precious metals. This makes it possible to diversify trading strategies without needing separate accounts for each asset class.

5. Out-of-hours trading

Many spread betting platforms offer after-hours trading, allowing you to access major currency pairs and indices outside regular exchange times. This means you can react instantly to global events, earnings announcements, or breaking news instead of waiting for the official market session to open.

Risks and Limitations of Spread Betting

While spread betting offers several advantages, it also carries significant risks that every trader should understand. Here are the key limitations:

1. Leverage can magnify losses

Just as leverage can increase profits, it can also amplify losses. For example, if you bet £10 per point on a market and it moves 100 points against you, you would lose £1,000, even if your margin deposit was only £500.

2. Rapid market movements

Financial markets can move quickly due to news releases, economic data, or unexpected events. Such volatility can cause sharp price swings, making it difficult to react in time and potentially leading to larger-than-expected losses.

3. Potential to lose more than your deposit

Because spread betting is leveraged, losses are not limited to the funds you initially deposit. Without proper risk management tools like stop-loss orders, you could end up owing more money than your starting balance.

How to Start Spread Betting

Getting started with spread betting is straightforward, but it’s important to follow the right steps to build a solid foundation. Follow the steps below:

Step 1: Understand how spread betting works

Before placing any trades, make sure you understand the mechanics of spread betting — including spreads, bet sizes, leverage, and margin — so you know how profits and losses are calculated.

Step 2: Choose a regulated broker

Select a reliable broker such as VT Markets, which offers competitive spreads, secure platforms, and strong regulatory oversight.

Step 3: Create and fund your trading account

Open a live account or a demo account, deposit funds, and get familiar with the trading platform. A demo account is especially useful for beginners to practice with virtual money before trading live.

Step 4: Choose and analyze the market

Decide which asset you want to trade, whether it’s forex, indices, commodities, or shares. Use charting tools, technical analysis, and news analysis to support your decision.

Step 5: Decide to go long or short

Place a buy bet if you expect the price to rise or a sell bet if you expect it to fall. Spread betting gives you the flexibility to profit in both directions.

Step 6: Implement risk management strategies

Use stop-loss and take-profit orders, keep your bet size in proportion to your account balance, and avoid over-leveraging. This helps protect your capital from large swings.

Step 7: Stay informed and updated

Monitor market news, economic data releases, and global events that can impact your trades. Continuous learning and staying updated are essential for long-term success.

In Summary

Spread betting lets traders speculate on markets without owning the asset, offering flexibility to go long or short and access a wide range of global instruments with tax advantages in the UK. But because leverage is involved, losses can exceed your deposit, so risk management is crucial. With a solid understanding of how spread betting works and careful use of tools like stop-loss orders, traders can take advantage of its opportunities, while beginners are best advised to start with a demo account before trading live.

Start Spread Betting Today with VT Markets

If you want to explore spread betting, VT Markets provides user-friendly platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5), advanced trading tools, a VT Markets demo account to practice risk-free, and access to a comprehensive Help Centre to support your learning. Start learning the basics, test strategies, and get ready to trade global markets with confidence.

Take the next step today and open your account with VT Markets to experience the benefits of spread betting for yourself.

Frequently Asked Questions (FAQs)

1. Is spread betting legal outside the UK?

Spread betting is primarily available in the UK and Ireland. In most other countries, including the US, it is restricted due to local regulations.

2. How much money do I need to start spread betting?

Some brokers allow you to start with as little as £100, but having a larger balance gives you more flexibility to manage risk and withstand market volatility.

3. What markets can I spread bet on?

You can trade a wide range of markets including forex, indices, commodities, shares, and even precious metals, all from a single trading account.

4. Is spread betting suitable for beginners?

Yes, but it comes with high risk. Beginners should start with a demo account, practice trading strategies, and learn proper risk management before moving to live markets.

5. What is the minimum stake per point in spread betting?

This varies by broker. Some brokers allow trades from as little as £0.10 per point, which makes it easier for beginners to control risk.

6. Do spread bets expire?

No, spread bets don’t have a fixed expiry date. You can close them at any time during market hours, as long as you meet the margin requirements.

7. Can spread betting be used for hedging?

Yes. Traders often use spread betting to hedge existing investments. For example, if you hold shares and expect the index to fall, you can place a short bet to offset potential losses.

8. Is spread betting better for short-term or long-term trading?

Spread betting can be used for both. It’s popular for short-term trading strategies like day trading or swing trading, but you can also hold longer positions, though financing costs may reduce profitability.

9. Do I receive dividends when spread betting on shares?

You don’t own the underlying shares, so you don’t receive dividends directly. However, brokers often make an adjustment to your account to reflect dividend payments if you are long on the stock at the time of the payout.

10. Can I lose more than I deposit when spread betting?

Yes. Because spread betting uses leverage, losses can exceed your initial deposit. Using stop-loss orders and managing position sizes is essential to limit risk.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

18 August 2025 – VT Markets is proud to announce the successful acquisition of its Securities and Commodities Authority (SCA) Category 5 license for its Dubai branch under license number 20200000299, which permits the regulated activities of introduction and promotion within the UAE. This marks a significant step forward in establishing VT Markets (Pty) LTD – Dubai Branch, referred to as VT Markets Dubai, as a trusted financial services player in the region.

The Securities and Commodities Authority (SCA) is the federal financial regulatory agency in the United Arab Emirates, ensuring transparency, market integrity, and investor protection in the country’s financial markets. This license empowers VT Markets to introduce and promote secure, transparent, and high-quality services to clients in the UAE, further solidifying its position as a trusted leader in the global trading industry,

“The acquisition of the SCA Category 5 license reflects our commitment to the highest standards of regulatory compliance. This achievement not only enhances our ability to operate in a secure, transparent, and compliant manner, but it also reinforces our position as a trusted financial services provider in a rapidly evolving market. As we continue to prioritize the integrity of our operations, this milestone strengthens our ability to offer our clients introductions to regulated and licensed financial institutions that will offer them a safe and reliable trading environment in this dynamic region,” shared Ahmed Ismail Iman, Head of Compliance, VT Markets Dubai.

The SCA license is a crucial part of VT Markets’ ongoing expansion efforts and plans to continue strengthening its presence and adding more licenses to its portfolio. As part of its vision, VT Markets plans to continue broadening its reach by securing additional licenses in strategic regions, ensuring its ability to offer regulated and compliant services worldwide.

About VT Markets

VT Markets (operating through its related or affiliated entities under the VT Markets brand umbrella) is a regulated multi-asset broker with a presence in over 160 countries as of today. It has earned numerous international accolades including Best Online Trading and Fastest Growing Broker. In line with its mission to make trading accessible to all, VT Markets offers comprehensive access to over 1,000 financial instruments and clients benefit from a seamless trading experience via its award-winning mobile application.

For more information, please visit the official VT Markets website or email us at info@vtmarkets.com. Alternatively, follow VT Markets on Facebook, Instagram, or LinkedIn.

For media enquiries and sponsorship opportunities, please email media@vtmarkets.com, or contact:

Dandelyn Koh 

Global Brand & PR Lead

dandelyn.koh@vtmarkets.com  

Brenda Wong 

Assistant Manager, Global PR & Communications

brenda.wong@vtmarkets.com