Financial spread trading , also called spread betting presents investors a tax free instrument to speculate on financial market movements be it if they are growing or falling. It additionally permits for the trading of commodities, indices, currencies, gold and silver, bonds, in addition to equities all from one account. This can be a derivative product which in simple terms means that the rates you are trading on are derived from the underlying product. The actual spread will be the difference between the price you buy and the price you can sell at.