Spread Betting Jargon Explained
Here is where we give you a simple guide to the
meanings of some of the terms used when reading about spread betting.
Just click on a term you want to understand - in the Index section choose one of the words underlined in blue - and you will be taken to the right part of this page for that term.
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Bid - the price you can sell at (always the lower price). [top]
Call Option - the right to buy at an agreed price in the future. [top]
Day Bet - a bet that lasts just one day. [top]
Expiry Date - day and time the bet expires. [top]
Fixed Odds - when making a traditional bet you receive fixed odds i.e. 3-1, 4-1 etc. and your maximum loss is your stake money. [top]
Guaranteed Stop-Loss - guarantees a maximum loss by closing your position out at an agreed price if the market trades there regardless of volatility. [top]
Long - what you call the position if you buy the market i.e. if you buy £5 gold at 290 you would be long £5 of gold at 290. (With options you can take the same positive view of the market by buying call options or selling put options, in both cases you would be called 'long the market'). [top]
Long Position - this means owning the product - eg having purchased puts or calls (which means you may be long or short the market). This is the only side of position we recommend in options because your loss is limited to how much you have paid to buy your position. Do not go short options). [top]
Minimum Size - amount of money required to be left with the bookmaker or bookrunner to begin trading. Remember this may go up if bets are going against you and you will have to deposit more funds if this is the case. [top]
Premium - is the cost of the option. [top]
Put Option - the right to sell at an agreed price in the future. [top]
Short - what you call the position if you sell the market i.e. if you sell $5 of gold at 285 you would be short of gold at 285. [top]
Spread - difference between the bid and the offered price. [top]
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