Spread betting is one of the Derivative strategy invented by mathematician Charles K.McNeil in Chicago during 1940s. If it is invented by an American but it is currently not legal in America.But it is widely famous in Europe because of Landon investment banker Stuart Wheeler founded index in 1974,pioneering the industry by offering spread betting on Gold.
WHAT IS SPREAD :
In stock market Trading the Difference between bid price and ask price is known as spread.Spread betting means profiting from the spread.As Spread betting company makes profit from this spreads so Spread betting is commission free unlike stock market trading.
ADVANTAGES OF SPREAD BETTING:
The ability to go both long and short
Less margin requirement
No stamp duty