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Financial Spread Betting
What is Financial Spread Betting?
A Financial Spread Bet allows an investor to bet on whether they believe that the price quoted for a particular financial instrument is likely to strengthen (go up in value) or to weaken (go down in value). The profit or loss for an investor is determined by the difference in the buy and sell price.
What financial instruments can I trade using Spread Betting?
RBS Spread Trading offers over a thousand Spread Betting products including Equity Shares and Indices, Foreign Exchange, Treasuries and Commodities. For a full list of products available please click here.
Range of markets
Can I trade over the telephone?
Yes. Customers can phone our dealers directly to place any trades.
How easy is it to take funds out of my account?
Once your account has been set up, you can contact our payments department and authorise a funds transfer. Funds can be remitted either electronically straight into your account or we can issue you with a cheque. Bank charges apply to some payment types.
What is margin trading?
Margin is a deposit you make so you can open your bet. Margin trading allows you to free up your capital as only a small percentage of the total value of trade is tied up.
More about margin
How and when is financing charged and how is it calculated?
If you carry a Spread Bet position overnight, it incurs a financing cost. Finance is calculated on 100% of the value of the equivalent position. It is calculated on a daily basis at market price. If you are long, you'll have to pay interest to RBS Spread Trading; if you are short, you may receive interest from RBS Spread Trading.
Financing is charged on any positions held overnight (positions open at 10pm London time).
More about financing
What is a Daily Rolling Cash® Bet?
RBS Spread Trading allows you to use the Daily Rolling Cash® bet. This daily bet allows RBS Spread Trading to offer spreads that closely mirror the underlying daily cash price and do not include a fixed expiry.
What are the minimum and maximum trades I can place?
The minimum trade size across all Spread Betting products is £1 per point. The maximum trade size is dictated by the amount of funds you have in your account to use as margin and by the size available in the underlying market.
Do I have to pay tax on my winnings?
There is no stamp duty and no Capital Gains Tax to pay* on Spread Betting.
*Tax laws can change.
Opening an account
How do I open an account with RBS Spread Trading?
To open an account online please click here, or contact one of our sales team on 0845 353 0000 or 0203 003 2500.
Who can open a Spread Betting Account with RBS Spread Trading?
Any person resident in the UK can open a Spread Betting Account provided they are over 18 years of age.
Do you offer credit accounts?
No. RBS Spread Trading offer just one type of account - a deposit account.
Can I open more than one account?
Yes. If you require a second account (sub-account) please contact our client relations department on 0845 353 0000 or 0203 003 2503.
Can I open a joint account?
Yes. To open a joint account you will need to complete an application form for each party and enclose a note, signed by both parties, stating that you require a joint account. The documentation required from each applicant is the same as that required for an individual account. To open an account online or request an account application form please click here.
How long does it take to open an account with RBS Spread Trading?
Providing we receive the correct documentation from you, your account should be up and running within a business day from receipt of this documentation.
Trading with RBS Spread Trading
Is RBS Spread Trading regulated?
RBS Spread Trading is a trading name of CMC Spreadbet Plc. Spread Betting accounts are opened with CMC Spreadbet Plc which is authorised and regulated by the Financial Services Authority (FSA).
What should I do if I have a complaint?
Should you have reason to complain, then it is important that you advise us as soon as possible. Please contact a member of our helpdesk team who will be pleased to help. Most complaints will usually be resolved at this early stage.
If your complaint is not resolved to your satisfaction in the first instance you will be able to refer the matter to our compliance department, in order for them to conduct their own investigation. A final response will be issued by compliance.
View RBS Spread Trading’s complaints handling procedure
Order types
What is a 'stop' order?
A stop order is an order placed to limit the loss on an open position. It can also be used to enter the market at an inferior rate, allowing you to enter the market on a 'breakout' of the current trading range.
Example: You have bought (long) £1 a point ABC Corp at an opening price of 122p. You believe ABC Corp will strengthen however, want to limit your losses and place a stop loss order to sell (short) £1 a point when ABC Corp is at 110p, thus limiting your losses if ABC Corp falls to 110p or below.
What is a 'limit' order?
A limit order is used to place either a closing trade to take a profit on an open position at a predefined rate set by you, or as an opening trade at a more favourable rate than the current price for that instrument.
What is a 'good 'til cancelled' (GTC) order?
A GTC order is when the conditional order (i.e. limit/stop) you place remains in the market until it is either executed according to the terms of that order or is cancelled by you. Conditional orders can be placed as GTC or 'Day' which will work in the same manner as a GTC but will be automatically cancelled at the end of the trading day if not executed.
Important Note: If you close a position, you must cancel any related orders you have placed against that position. Failure to do so will mean that the order remains in the market and at risk of execution.
Do you offer guaranteed stops?
Yes, controlled risk bets (CRB) are a combination of a market order (a buy or a sell) and a guaranteed stop. The trade must be designated a CRB at the outset of the trade and there is an up-front premium payable due to the guaranteed element of the transaction. For a full explanation please see our online dealing guide.
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