how does spread betting compare to CFDs?

Question

When should I use each?
Thanks.

Answer 1

Spread-betting is betting on the outcome of just about anything from (horse / dog /.car) races to games (football / cricket / elections etc) to share movements and currency rates.

CFD's are restricted to shares and typically;y are available in minimum 'lots' of £1,000 to £2,000.

In spread betting you can loose your stake times the 'difference' (say you bet £10 per run (Cricket) against England at 200 = for every run under 200 you win £10, for every run over 200 you loose £10. They make 500 runs. You loose £3,000. If they make 600 runs, you loose £4,000 ...)

In the case of CFD's, your losses are restricted to the initial Contract price.

You should never use either one unless you have a few thousand quid to gamble with (and have some idea of what you are doing, which you plainly don't)