Answers for Spread Betting E-Guide Exercise


(1) Bid = sell, ask = buy, difference = spread,

(2) Spread refers to the way firms make money by quoting a wider spread and betting refers to the tax status,

(3) Any of the following: some traders do not understand leverage, you can lose more money than you ‘stump up’ for margin, buying too much can lead to owing the spread betting firm more money that you have in your account,

(4) By going ‘short’, or ‘shorting’,

(5) FSA,

(6) False,

(7) Leverage or margin,

(8) 28% (May 2011),

(9) Any one of the following: They fail to understand the nature of leverage, they buy too much, they have an addictive personality,

(10) N/A