Forex spread betting is a tool by which you can speculate on the direction of the currency pair price without owning the asset. Here, you need to speculate whether the price will move upward or downward. The precise the speculation, the greater the gains. To begin with, as a trader, you need to pay a small amount, i.e., margin, to acquire a large position. Remember that both losses and profits may outweigh your initial deposit since both of these are calculated based on the full position size. Concepts, such as leverage, bet size and bet duration, form part of forex spread betting.