ELI5: Explain Like I'm 5

Financial spread betting

Financial spread betting is like gambling, but with stock market prices. When you ‘bet’ on stocks, you’re predicting whether their prices will go up or down. If you guess correctly, you can make a profit! For example, if you start with $100 and the stock increases in value by 10%, you’ll make a profit of $10. But if the stock goes down in value by 10%, you’ll lose $10. Spread betting can be quite risky and you could lose a lot of money. That’s why it’s important to do your research and make sure you know what you’re doing before you start.