What is a forward bet?
It is a type of spread bet that expires after a fixed period, in contrast with a daily funded bet, which can run for as long as the trader is prepared to pay to keep it open. Both types of bets are used to speculate on market movements.
Where have you heard about forward bets?
Spread betting has boomed in recent years and active investors will have taken an interest, in the course of which they will hear about forward bets. Advertising and promotional literature for spread betting will mention forward bets.
What you need to know about forward bets.
A forward bet is a type of spread betting, this being the form of speculating in which traders place investment on either side of a 'spread'. The spread represents what the broker sees as the most likely range of outcomes, leaving all outcomes either side of the spread – in terms for example, of the movement of the dollar – available to invest. A forward bet remains open for a set period of time and then expires. In contrast with the daily funded bet, there is no daily charge for a forward bet – instead, the spread is wider, giving traders less generous margins, and this pays the broker's costs.