The Bid-Offer Spread

• The spread betting market works by always quoting a two way price
• The bid price is the one at which the spread betting client can sell at, whether to sell out of a long (buy) position or to initiate a short position
• The offer price is where the spread better can buy the market to go long or to cover a short position

The market on the FTSE 100 index may well be 4,200 bid and 4,204 offered. With spread bets these are the only two prices you can deal on, you cannot get 'inside' the spread, ie offer to sell the spread at 4,201 against the spread betting company's bid price of 4,200.

Market Buy Order

A market order is the most common type of order, and they are also the most simple to execute and understand.

• A spread bet broker will quote you a price in the market you're interested in, perhaps 4200-4204 for the March FTSE 100 index
• If you wanted to buy using a market order then you'd always be buying on the offer price, in this case 4204

When executing a market buy order it is often good practice to state not only that you want to buy at the market, but also the price.

Client: Hello please quote me the March FTSE 100 Broker: 4200-4204 Client: I'll buy £5 a point at market, or even better Client: I'll buy £5 a point at 4204