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Spread betting is a financial derivative that allows traders to speculate on the price movement of various assets, such as stocks, currencies, and commodities, without owning the underlying asset. Instead of buying or selling, traders place bets on whether the price will rise or fall, with profits or losses determined by the accuracy of their predictions and the size of the bet. This form of trading is popular for its potential for high returns and the ability to leverage positions, but it also carries significant risks, including the possibility of losing more than the initial investment.
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