Nobody mentioned that you can make a lot when the price of a share goes down and this is one of the basic differences between normal share dealing and spread betting. And shares fall move down much faster than going up as selling causes panic...a nice site go learn the ins and outs of spread betting is http://www.financial-spread-betting.com

Dennis, London,

Oh dear...does the times not do research any more? What rubbish!

Yes...in theory a spread bet on the down side has infinite loss potential if the market moves up (whereas an upside bet has a defined, probably large, loss if the instrument runs to 0). But that's true of many investments...consider what will happen to many people if house prices drop 25% and they put in a 10% deposit.

Spread betting firms offer (or insist on) the right to place a stop loss on any bet to the deposit placed. For example I placed a positive bet on HSBC December 2007 3 weeks ago at 870p. My purshase price was 878p, the 8p difference being the cost of the stop loss insurance. If the shares dropped below 855 (just below the 52 week low) then the deal would be cancelled. The shares rose to 815p yesterday, so I closed out for a nice 430 pounds profit...not taxable either.

So yes...investing in any instrument is risky...but so is sticking your money under a mattress. Do the homework...stay diversified.

Liam, London, UK