Spread betting on indices
Indices are the most popular spread betting markets: one position gives exposure to an entire market like the FTSE 100 (around 10,650 at the time of review), the S&P 500 or the DAX, with tight spreads and near-24-hour pricing.
How it works
You stake per point of index movement. Buy the FTSE at £2/pt and a 50-point rise makes £100; a 50-point fall costs £100. Under FCA rules, major-index margin is 5% (20:1 leverage) — so a £2/pt FTSE position is roughly £21,300 of exposure for about £1,065 down. See the margin calculator.
What to check before trading
Compare spreads on your index in and out of market hours (they widen overnight), overnight funding on daily rolling bets, and whether the provider quotes the cash index or the future. Major providers' FTSE spreads converge at about 1 point — the differences show up in US and European indices and out-of-hours pricing.
Index moves compound fast with leverage: a 2% index drop on 20:1 leverage is a 40% hit to margin. Size positions accordingly.