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What are the costs of spread betting?

Answer ...

The costs associated with financial spread betting are included in the price of the trade through the spread (the difference between the bid and the offer price). Therefore the wider the spread, the more you pay to trade. When opening or closing a bet, you buy at the upper end of the spread and sell at the lower end.

When considering a company to spread bet with you should always look at how tight the spreads are that they offer. Thankfully, spreads are generally getting tighter due to explosive growth of spread betting and the increased competition that comes with industry growth.

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