Spread betting without a stop-loss could lead to debt problems
Spread betting without a stop-loss could lead to debt problems
- Friday, 11 February 2011People placing spread bets have been urged to take great caution with the "volatile form of gambling" on risk of facing
debt problems.
There are now more than one million spread betting accounts in the UK, with players gambling money on whether they think stocks and shares in the financial and commodities markets will rise or fall.
However, Global Betting and Gaming Consultants, an independent gambling consultancy, urged people placing spread bets to ensure they have a stop loss in place, which will effectively limit the amount of money that they can lose.
Warwick Bartlett, founder of the company, said: "One of the reasons why people like to play on spread betting is that the winnings are tax free – there's no capital gains tax to pay on the profit.
"It's a very volatile form of gambling – there's no question about that. Any gambler that participates in spread betting should make sure that they put a stop loss in place, which can limit the amount of money that they can use."

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