Betting is a very intriguing and complicated term for someone who does not keep any interest in stocks and financial upswings. Spread betting is a form of betting in which stakes are on unknown results. A minimum and maximum limit is set. This is the betting spread. The profit and loss is decided at the end of the event. The bidder gives an amount above or below the limits.
Let us elaborate on product betting say a product has been quoted to be in the range of 40- 60$. The investor or the bidder will quote in between these or any number just above or below the maximum and minimum limit.
On the basis of the final decision, the profit and loss is counted and the nearest bidder wins. The betting can be done on anything, price of the commodity, indices, foreign exchange, sports, and bullion and individual shares. You can bet on anything in the global market and earn a tax benefit. But it is a very risky form of investment and there is huge money on stake.
Financial spread betting is the investor, do not directly own the Stock and play on the movement of price of the securities.
