And the dangers

Emotion. Like all forms of speculating, spread betting can be addictive and the unpredictability of market movements can produce feelings of panic, complacency, euphoria, dejection, infallibility and failure.

Losing streak. As you only have to put up a fraction of your total exposure, be aware that if things do turn against you,you can lose more than your original deposit.

Ignorance. Placing a spread bet is all too easy. But only fools rush in without understanding how to play the game. Unless you know how the system works and you have a carefully prepared plan for success, you will lose.

No get rich quick scheme. Yes spread betting is a great and cost effective way to trade and take positions, but no they are not the panacea to all your investment ills. If you make bad investment decisions, it doesn't matter what method you use to trade. Always do your research, and don't get carried away.

No perks of the job. You don't pick up the perks of actually owning the shares. For example you will miss out on gorging yourself on tea and chocolate biscuits at a company's annual meeting or getting to vote on shareholder issues.

To sum up, it is important to remember that not every trade is a winner. Any market matches buyers and sellers. If you are buying at a certain price, somebody is willing to sell. You can't both be right. However, don't blame spread betting for this truism. The point is that they are a flexible way to get in and out of the market quickly.