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Spread Betting FAQ

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 a Spread Better is determined by the difference in buy and sell price. Spread Betting Example

What products can I trade using Spread Betting?

We offer 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, Spread Betting can be conducted over the telephone, although clients will generally find that trading over the internet is faster than telephone trading. There is, however, no penalty for trading over the telephone.

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 you can be issued a cheque. Bank charges apply to some forms of payment.

How and when is financing charged, and how is it calculated?

If you carry a Spread Bet Share position overnight, it incurs a financing cost. Finance is calculated on 100% of the value of the equivalent physical share position. It is calculated on a daily basis at market price. If you are long, you'll have to pay interest to DS Market Trader; if you are short, you may receive interest from DS Market Trader.

Financing is charged on any positions held overnight (positions open at 22.00 London time).

What is a Daily Rolling Cash® Bet?

Direct Sharedeal utilises the Daily Rolling Cash® bet, a product designed for the more professional short-medium term investor. This daily bet allows us 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.

Opening an Account

How do I open an account with DS Market Trader?: For more information on how to to open an account online or request an account application form please click here, or contact a Sales Representative on 0800 279 9821
Who can open a Spreadbet account with DS Market Trader?: Any person resident in the UK or Ireland can open a Spread Betting account provided they are over 18 years of age.
Do you offer credit accounts?: No, we only offer deposit accounts.
Can I open more than one account?: Yes, should you require a second account (sub-account) please contact our sales department on 0800 279 9821.
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 DS Market Trader?: Providing we receive the correct documentation from you, your account should be up and running within a business day.

Trading with DS Market Trader

Who is DS Market Trader and what is its relationship to CMC Spreadbet Plc?

Spread betting services are provided by CMC Spreadbet Plc trading as DS Market Trader, to whom you have been introduced by Direct Sharedeal Ltd. All dealing, administration and settlement in relation to these services is undertaken by CMC Spreadbet Plc. You and CMC Spreadbet Plc, not Direct Sharedeal Ltd, will be counterparties to each transaction. DS Market Trader is a trading name of CMC Spreadbet Plc and CMC Markets UK Plc who are authorised and regulated by the Financial Services Authority 170627 and 173730

What should I do if I have a complaint?

Should you have reason to complain, then it is important that at first you advise your usual contact at DS Market Trader. Our Helpdesk staff will be pleased to help, so please ask to speak to any of our representatives if you feel you have cause for complaint. 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 DS Market Trader's internal 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 ABC Corp at 110p, thus limiting your losses if ABC Corp falls to 110p or below. Stop orders are rarely offered when Share trading.

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. Limit orders are rarely offered when Share trading.

What is a 'Good 'Til Cancelled' (GTC) order?

Conditional orders (ie Limits / Stops) can be placed GTC, Good 'Til Cancelled. A GTC order means that the order you place will remain in the market until it is either executed according to the terms of that order, or is cancelled by you.

*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 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 upfront premium payable due to the guaranteed element of the transaction. For a full explanation please see our online dealing guide. Guaranteed Stops are rarely offered when Share trading.

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