Below we describe the more common financial spread betting markets.

Individual Shares

The spread represents a prediction of the price a company's shares will be trading at on a specified date in the future.

e.g. Vodafone's Share Price

Stock Market Indices

The spread represents a prediction of the value of a stock market index on a specified date in the future. Stock market indicies aim to reflect the performance of a group or all stocks on a stock market.

e.g. FTSE 100 index, which encompasses the top 100 companies by market capitalisation on the London Stock Exchange.

Currencies

The spread represents a prediction of the exchange rate between two currencies at a specified date in the future.

e.g. USA dollars to the pound sterling

Commodities

The spread represents a prediction of the value of a commodity at a specified date in the future. A commodity is a physical entity usually farmed or mined.

e.g. Orange Juice, Coffee, Gold

Bonds and Interest Rates

The spread represents a prediction of the value of a principle international bond at a specified date in the future.

Bonds are issued by a government or corporations in order to raise money to pay for public spending. Governments pay a fixed rate of interest every year and so their capital value will rise and fall depending on the short term changes in local interest rates. Prices can be affected by interest rate changes, currency movements and changes in economic situations of the issuing company.

e.g. Gilts (British government bonds)

Options

Options give you the right, but not the obligation, to buy or sell a market at a given price on or before a fixed date in the future. There are two types of options; 'calls' - backing the market to rise and 'puts' - backing the market to fall.

Options are an alternative way of trading on the financial markets, but with the added security of knowing the downside when buying a call or put.

Options can be VERY volatile. These markets are only really suitable for those with experience in trading.