The History of Spread Betting

Some financial experts and historians trace the origins of spread betting back to the U.S. and the unregulated "bucket shops" in the early part of the Twentieth Century.

However, it's Generally Accepted thats it wasn't Until 1974, When entrepreneur Stuart Wheeler Came up with the idea to give investors the opportunity to bet on movements in the price of gold - whether up or down - That spread betting as we know it today was born.

The birth of financial spread betting

Stuart Wheeler's idea was to create an index That Would give investors the opportunity to bet on the movement of gold, without having to buy or sell Actually the physical commodity in the market. This new company was Called Investors Gold Index - until the Bank of England objected to it trading name and it underscores That Became IG Index.

The premise was simple yet brilliant. By opening up Some of the mystique Surrounding the financial markets and breaking down the traditional barriers to entry, Stuart wanted to help a new generation of investors take Their position on a market without having to go through the usual Heavily-regulated channels.

Financial spread betting had clear financial benefits too. Falling under gambling law, it was essentially tax-free. And, with margins modestly Replacing the hefty premiums Physically Needed to invest in gold, Suddenly a small section of the world's financial markets Became more Accessible to A Wider public.

Growth and competition

Although at first seen as niche, the market expanded and soon it was Inevitable That new companies and competition Would follow, namely in 1983 and City Index CMC Markets in 1989. Nowadays, there are more than-20 spread betting companies, suche Spreadex as Cantor Index and Capital Spreads.

Over the years to come, the Remainder of the world's financial markets become Would Accessible by the medium or spread betting. It's Now Possible to spread bet on stock indices, forex, shares, House Prices, options, interest rates and commodities.

Modern Developments

While financial spread betting takes place must on sophisticated online dealing platforms, it's Also Possible to bet through a mobile phone. And suche is the nature of the world's financial markets you-can place bets 24 hours a day.

The types of spread bet Increased possessions too, from binary to bungee bets, the industry is always innovating.

It is always important to remember while financial spread betting That Can result in Magnified profits, losses Too Can Be Greater Than the initial outlay.