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In a nutshell, options trading is a regulated activity with an established market governed by the financial system with a real asset being traded while spread betting is an unregulated betting activity just like betting on anything else.

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12y ago

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A regular option's return is dependent on not only getting the direction and timing correct but also the magnitude. How much a traditional option returns is based on how far away, in either direction (depending on whether call or put, buying or selling) the price at expiration is from the strike price.

Determining potential returns on traditional options is extremely complex, involves many many variables and requires extensive analysis.

Binary options are much simpler and easier to learn. As the name implies, with binary options there can be only two outcomes: win, or lose. A trader does not need to determine the magnitude of a move with binary options. In addition the return is both fixed, and fully known before you ever make a trade.

Binary options offer many advantages over traditional options. Especially for the novice trader.

As with all financial products there is also always significant risk of loss and you shouldn't speculate with anything you cannot afford to lose.

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Wiki User

10y ago
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The difference between spread betting and CFD trading is that spread betting incurs penalties when not periodically and carefully maintained whereas CFD trading virtually has zero risk factors as long as the GDP and RDP numbers are stable and one knows the trend thoroughly.

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11y ago
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From a trading standpoint their exists no difference between spread betting and Forex trading. With that said the major difference between the two is that spread betting is tax free.

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Wiki User

11y ago
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Q: What is the difference between spread betting and Forex trading?
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