The risk of needing to deposit more funds if a trade goes against you.
The "Handbook" emphasizes that while leverage can magnify profits, it equally amplifies losses. Professional spread betters treat their activity like a business, focusing heavily on capital preservation. Stick to a predefined trading plan. The Financial Spread Betting Handbook: A Guide ...
Traders can control large positions with a relatively small deposit (margin). The risk of needing to deposit more funds
The primary draw of spread betting is its unique tax status. In many jurisdictions, such as the UK, profits from spread betting are currently exempt from capital gains tax and stamp duty. This makes it an attractive vehicle for active traders looking to maximize their net returns. such as the UK