Thank you jlz
I have read your link to the highly esteemed Investopedia and I can find absolutely no reference to spread betting being a leveraged product. In fact, it seems to concur with my original post, that spread betting is betting and has no relevance to leverage.
Dmedin makes the point that the so called leverage as referred to in spread betting is 'notional'. I agree. but I would go further and suggest that margin in spread betting is equity to protect a spread betting company's interests in the case of a 'black swan event'.
For example - if you had not put a stop loss and the market suddenly tanked or like when the Swiss Franc made a dramatic short in 2011.
Investopedia does make reference to spread betting companies adding small margin to the spread but this is not leverage or margin in the sense that I am referring to here.
IG say that they balance their book, winning clients against losing clients that their profits come from the spread, which is what spread betting is all about.
Perhaps IG would correct me if I am wrong ?
But I will lay 10/1 against. 😉