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Contracts for difference

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10. Comparison of CFD trading to spread betting

Like CFDs, spread bets are a way to 'bet' on the movement of a stock (or index) without actually owning the underlying share and therefore without paying stamp duty. As with CFDs, you open and close at a price quoted by the broker/indexation company, and the price offered is determined by the performance of the underlying shares. But there are differences:

Click here for a quick, visual, presentation of the differences between ordinary share investing, spread betting, and CFDs.

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