Unlike traditional investing, spread betting enables you to make geared trades. When you spread bet on shares you can invest up to ten times the amount of money you have in your spread betting account. For indexes such as the FTSE 100 the exposure is even greater, up to 20 times the money you have in your spread betting account. As a result any gain you make on a single trade is magnified. If you have £100 in your spread betting account and buy the equivalent of £1000 of shares and the shares go up by 10%, you've made £100. An increase of 10% in the underlying stock translates into an actual return of 100% or ten times greater.
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