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Risk Warning: CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage.
Approximately 80% of retail client accounts lose money when trading in CFDs and spread bets.
You should consider whether you understand how CFDs and spread bets work and whether you can afford to take the high risk of losing your money.

FAQs

FAQs

Get instant answers to the most common questions about trading with Lunaro. Our comprehensive FAQ section covers everything from account opening to platform features, helping you make informed decisions about your trading journey.

What exactly are commodities, and how can I trade them? ▼

Commodities are physical goods like oil, gold, wheat, and copper that are traded on exchanges or OTC. You can trade them on our offering using financial derivatives called CFDs and spread bets via our web, desktop or mobile platform.

Which precious metal CFDs are offered? ▼

Lunaro offers CFDs and Spreadbets on both Gold and Silver.

How is the pricing of precious metals determined? ▼

We price our precious metals from a source of liquidity providers. We then make a mark up on the spread as our fee.

How do I open a live trading account? ▼

On our website, you will see the “Open an Account” button. Clicking this will take you directly to our online application page, which should only take a few minutes to complete. Once your application is approved, you can then trade our offerings via CFDs or Spread Betting.

When can I trade metals? ▼

Metals can be traded during their usual market trading hours; these can vary depending on the exact metal you are looking to trade. The relevant market trading hours can be found on our website and trading platforms.

How do I set up a commodity trading account? ▼

On our website, you will see the “Open an Account” button. Clicking this will take you directly to our online application page, which should only take a few minutes to complete. Once your application is approved, you can trade our commodity offerings via CFDs or Spread Betting.

How does trading commodities work? ▼

Commodities are physical goods like oil, gold, wheat, and copper that are traded on exchanges or OTC. You can trade them using our offering via CFDs or spreadbets on our web, desktop, or mobile platforms.

What are the three main categories of commodities? ▼

Metals, energies, and agriculture.

Who typically invests in commodities? ▼

A wide range of people can become clients when trading commodities. These include individuals with professional experience in the underlying commodity, clients who have a view on the price movements of a commodity—whether they are new to trading or highly experienced—and businesses that operate in commodity-related industries, such as jewellery, food production, mining, or oil refining.

What is the cost of investing in CFD commodities? ▼

Our charges are built into the spread, which is the difference between the buying and selling price. For spot commodities, an overnight financing fee applies. Details of all our costs and charges can be found on the Costs and Charges page of our website.

Should I buy commodity stocks directly or trade CFDs? ▼

This depends on whether you wish to trade the value of the commodity itself or the performance of companies whose business relates to commodities. For example, the price of oil or the performance of BP as a company.

How can I test a new commodity trading strategy? ▼

We offer demo accounts and access to historical prices, allowing you to test your trading strategy and check your performance without risking any real money.

How do I trade other precious metals? ▼

If a precious metal you wish to trade is not available on our platform, please contact us either by email or phone, and we will explore the possibility of adding it for you.

What is the current size of global gold reserves? ▼

Approximately 36,000 metric tons, according to the World Gold Council Official, gold reserves.

How does commodity trading function? ▼

We offer commodities that can be traded using a CFD or Spreadbet. These are OTC derivatives that use leverage and roll daily, allowing the trades to remain open longer than conventional futures, should you choose to do so.

Can you provide an example of a commodity trade? ▼

Assuming the price of gold is $3,500 and you want to go long (speculating that the price will rise). You place a trade of 0.1 lots ($10 per point movement) You set a take profit at a price of $3,600 (potential profit of $1,000) and stop loss is set at $3,450 (looking to close the trade out at a $500 potential loss) The price eventually rises to $3,575 and you decide this is the highest point gold is likely to reach at this time and close the trade. You have now realised a profit of 75 points, which at 0.1 lots equates to $750

What are the “7 C” commodities, and what do they include? ▼

The term “7 C commodities” generally refers to a traditional classification of commodities that all start with the letter C. They refer to Crude oil, copper, corn, cattle, coffee, cotton and cocoa.

Can you give examples of commonly traded commodities? ▼

Gold, silver, Oil, Gas, cocoa, coffee, sugar and corn.

How can beginners invest in commodities? ▼

You can start trading commodities by simply making an application to open a trading account. Once your application is approved, you can trade Commodities via a CFD or Spread bet on our web, desktop, or mobile offering.

How long can commodities be held in a portfolio? ▼

This depends on whether you are trading a futures contract, which has an expiry date, or the spot price of a commodity, which is GTC (good till cancelled). Regarding holding positions in commodities on your account, there are no restrictions.

What is the minimum capital required to start trading commodities? ▼

Our initial deposit requirement is £250, and our minimum margin requirement for placing a trade is £100.

Which commodity is traded most frequently? ▼

Crude oil is the most frequently traded commodity due to its critical role in the global economy and its high market liquidity.

How can I invest in a specific commodity? ▼

You can start trading Commodities by submitting an application for an account via the open an account page. Once the application is approved, you can trade the commodities of your choice by searching for them on the platform and executing trades via a CFD or spread bet on our web, desktop, or mobile platforms.

How can beginners start trading commodities? ▼

You can start trading commodities by simply making an application to open a trading account. Once your application is approved, you can trade Commodities via a CFD or Spread bet on our web, desktop, or mobile offering.

How is the Forex market governed and regulated? ▼

The forex market does not have a central exchange and is not regulated by a single governing body. It is an Over-The-Counter (OTC) market, meaning trading takes place directly between participants. Each broker and its domestic regulator will therefore have their own rules and regulatory requirements. To trade forex with us, we offer CFDs and Spread Bets, and our services are regulated by the Financial Conduct Authority (FCA) in the United Kingdom.

What are gaps in Forex trading, and how do they occur? ▼

Gaps occur when there is little to no tradable price in the market; therefore, you may see jumps up or down between candles, leaving what appears to be a gap. This can occur for many reasons, such as high-impact news or data releases, or, for instance, when the market is closed on a Friday evening and then opens at a different level on the Sunday evening.

What is the average daily trading volume in the Forex market? ▼

The FX market is estimated to have an average daily trading volume of $7.5 trillion globally (according to the Bank of International Settlements)

Who is eligible to trade Forex? ▼

All individuals above 18 years of age can apply for an account. Provided that they pass the application process successfully of a brokerage firm, they can trade with it. Through the online application process, we assess the appropriateness of each client in accordance with regulatory requirements.

What do I need to begin Forex trading? ▼

You can start trading forex by making an application to open an account. Once the account is approved, you can trade forex via a CFD or spreadbet on our website, desktop, or mobile offering. You should be mindful of high-impact data and news, such as central bank decisions, economic data, and market sentiment, etc. These can cause volatility in the Forex market, and you should manage your risk accordingly. You should only ever trade using risk capital, which is money you can afford to lose.

How much capital is required to start trading Forex? ▼

Our initial minimum deposit is £250. However, depending on your trade size, you will be asked for a margin requirement, which will be a percentage of the total value of the trade. You should make sure you have sufficient cash in the account to cover this margin and the movement of the trade. When funding an account, you should only use risk capital – that is, money you can afford to lose.

How can I manage risk effectively in Forex trading? ▼

We offer risk management tools on our platforms, such as stop losses, which can help you mitigate risks on your trades.

Which instruments are available for Forex trading? ▼

We offer CFD and Spread bets for trading the forex asset class on your account.

What are the most actively traded Forex pairs? ▼

The Forex majors are the most commonly traded pairs on average. They are:
EUR/USD (Euro/US Dollar)
USD/JPY (US Dollar/Japanese Yen)
GBP/USD (British Pound/US Dollar)
USD/CHF (US Dollar/Swiss Franc)
AUD/USD (Australian Dollar/US Dollar)
USD/CAD (US Dollar/Canadian Dollar)
NZD/USD (New Zealand Dollar/US Dollar)

How do I trade Forex with direct market access (DMA)? ▼

We do not offer DMA forex trading, but we offer Over The Counter (OTC) products, which take the best bid/offer (buying/selling) price from our multiple liquidity providers to enable you to place a trade at the best available price on offer at that time.

What is the difference between sponsored access and direct market access in Forex trading? ▼

Sponsored access goes via your broker to an exchange/ MTF, whereas DMA goes through your own personal account to the exchange/ MTF.

What does Forex mean? ▼

Forex refers to the global marketplace for buying, selling, and exchanging currencies.

Is Forex trading considered high-risk? ▼

CFDs and Spread Bets are leveraged products and are considered complex instruments. Trading them carries significant risks, including those associated with the use of leverage.

Is Forex suitable for beginner traders? ▼

We offer education and training to clients in a variety of ways and can answer any questions or queries you may have. Forex trading, as with any other form of leveraged trading, comes with risks, and it is important to ensure you fully understand the nature of the product you are using to trade and that you are only ever using risk capital you can afford to lose.

How does the FX rollover process work? ▼

The rollover of an FX position is automatic, and you do not have to close or reopen your position. This provides a seamless trading experience. The fees for this occurrence can be found on our costs and charges page.

What are the margin requirements in Forex trading? ▼

In accordance with regulations, our minimum margin requirements for retail traders are 3.33%, or in other terms, maximum of 30:1 leverage.

How do I start trading Forex? ▼

You can start trading forex by simply applying for a trading account with us; once the application is approved, you can trade forex via a CFD or spread bet on our web, desktop or mobile offering.

How are funds and assets protected in Forex trading? ▼

All retail client funds are held in segregated accounts with top-tier banks, separate from the company’s own operating funds. This segregation is intended to protect retail clients in accordance with applicable regulatory requirements.

What documents are required to open a Forex account, and how long does the process take? ▼

Opening an account is simple and can take just a few minutes. ou will be asked to provide valid proof of identity and may be required to provide a valid proof of address issued in the last 3 months. The application process will guide you as which documents are considered valid and how to submit them.

How does Forex trading works? ▼

Forex trading is the act of trading international currencies. The currencies trade in pairs, and you are taking the view on picking a currency to either strengthen or weaken against the other currency in that pair.

Which Forex pairs can I trade? ▼

We offer an extensive list of FX pairs, including all the most popular pairs, these can be found on our platform or the Forex page of our website

Can beginners or non-professional traders participate in Forex trading? ▼

Yes, if you have the necessary knowledge and experience and are comfortable with the risks entailed with forex trading, you can begin your trading journey in forex by simply making an application for a trading account.

What are pips, and how are they used in Forex trading? ▼

Pips are the tradable points that denote the movement in an FX pair. This allows you to monitor the movement and gains or losses in a trade.

What is a swap in Forex trading? ▼

A swap is the fee incurred for rolling over the leverage position each evening.

How does leverage work in Forex trading? ▼

Leverage allows you to trade with a proportion of the notional value taken as cash from your account as a deposit; this is referred to as margin. This means the trade is less cash intensive when trading. Leverage does come with risks, as it means that your overall holding is valued at a higher value than what you have placed for the trade. You should be mindful of this when trading and only ever trade using risk capital.

What is a spread, and why is it important in Forex trading? ▼

The spread in forex trading is the difference between the bid price (what the market will pay for a currency) and the ask price (what the market will sell it for), and it represents the core cost of entering a trade.

How is equity calculated in Forex trading? ▼

Equity is your cash balance plus or minus your running unrealised P&L

How does Forex trading differ from traditional stock trading? ▼

When trading forex, you are speculating on the value of one currency against another whilst not taking ownership of the underlying currency, typically by utilising leverage. In contrast, when trading shares in their traditional form, you are purchasing the actual shares in a company and taking only ownership and paying for them in full. This is a long-only, non-leveraged position, and you will only make a profit if the share price increases.

What are the trading hours for Forex? ▼

Forex trades 24/5 opening at 10pm on Sunday and closing at 10pm UK time on a Friday.

Which currencies can be traded in Forex? ▼

We offer an extensive list of FX pairs, including all the most popular pairs; these can be found on our platform.

How is profit generated in Forex trading? ▼

The profit of a trade in forex, as with any market we offer, is on the difference between your entry point, at which you bought or sold, and your exit point, at which you closed the position, minus any fees and charges.

Is it possible to self-learn Forex trading? ▼

Yes, whilst we offer educational material and are on hand to assist you with any questions and queries, you can find a way of trading that best suits you and your risk appetite & trading goals.

What is forex trading? ▼

Forex trading is the act of buying and selling international currencies, which are traded in pairs. Traders take a position by predicting whether one currency will strengthen or weaken against the other currency in the pair.

How do I start forex trading? ▼

You can start trading forex by simply making an application to open an account. Once the account is approved, you can trade forex via a CFD or Spreadbet on our web, desktop, or mobile offering.

How much money do I need to start forex? ▼

Our initial minimum deposit is £250. However, depending on the size of your trade, you will also be required to meet a margin requirement; the minimum margin required for any of our markets is £100. You should ensure that you have sufficient funds on the account to cover both the margin and the potential price movement on your trades. Whenever funding an account, you should only use risk capital —money you can afford to lose.

What is the lowest amount to start forex? ▼

The minimum margin required is £100 or a percentage of the overall value of a position, whichever is greater. You can find the percentage that is required in margin under the product details section when selecting a market.

What is the best capital for forex trading? ▼

The amount needed to achieve your trading strategy will vary for everyone, depending on multiple factors such as trade size, range, and the market being traded. Whatever you determine to be the optimal amount for yourself should be risk capital —money you can afford to lose.

What is the best forex trading platform? ▼

We offer web-based, desktop, and mobile platforms for trading, allowing you to choose the option that best suits your preferences and trading needs.

What to avoid in forex trading? ▼

When trading forex, you should implement appropriate risk management and only trade using risk capital—money you can afford to lose.

What is the best time to trade forex? ▼

Forex trades 24/5, so you can trade at the time that suits your strategy best around the clock.

Which country is best for forex trading? ▼

Our offering is via CFD and Spreadbets. We are authorised and regulated by the FCA. FCA is the UK financial regulatory body that is responsible for overseeing financial markets and firms to ensure they operate fairly and transparently.

Where can I withdraw money from forex? ▼

You can withdraw your funds back to a bank or card registered in your name in accordance with our withdrawal policies.

What is the minimum deposit for forex? ▼

Our initial minimum deposit is £250. However, depending on the size of your trade, you may be asked to meet a margin requirement. You should ensure that you have sufficient funds in your account to cover this margin and the potential market movements of your trades. When funding your account, you should only use risk capital —money you can afford to lose.

What does indices trading involve? ▼

Indices trading is the trading of indexes, which are grouped-together stocks for sectors or entire stock exchanges, giving you the chance to take a more holistic and macro-level view of the market and trade in a more cost-effective manner. We offer the ability to trade Indices via CFD or spreadbetting.

Is it possible to earn profits from index trading? ▼

Yes, as with all of our products, if you place a trade that moves in your favour and you close at a price that benefits your position, should the gains on the position exceed all the costs associated with the trade, it will result in a profit

In what ways can stock index futures be used to hedge risk? ▼

If the index closely correlates with your underlying assets, you can use it to hedge or other holdings or trades. This allows you to manage the downside potential and offset the losses on underlying assets.

Are index futures considered a type of derivative? ▼

Yes, index futures are considered a type of derivative.

Am I allowed to exit or sell index futures before expiry? ▼

Yes, you can exit or sell index futures contracts before their expiry date. This is a common practice called "closing a position’.

How are indices defined in trading? ▼

An index, or its plural indices, are a collection of shares that represent a specific market or sector. Indices, such as the UK 100 and US Tech 100, track the performance of the largest companies within a particular country or industry. Trading indices gives you exposure to an entire market segment without the need to buy individual shares.

Which are the top 5 indices that traders follow? ▼

S&P 500, DOW Jones industrial average, NASDAQ, FTSE 100, DAX 40.

What are the steps to start trading indices? ▼

You can start trading indices by submitting an application for a trading account. Once your application is approved, you can trade the indices of your choice by searching for them on the platform and executing trades via via our web, desktop, or mobile platforms.

Which stock market indices are the most popular for trading? ▼

S&P 500, DOW, NASDAQ, FTSE 100, DAX, CAC 40, Hang Seng and Nikkei 225, according to investing.com and barchart.com.

How does trading indices differ from trading individual stocks? ▼

Indices are a collective of individual stocks and trade accordingly to the weighted ratios or as a portion of the amount of individual listed stocks in the index. This means that you have a more overall view of the market rather than the performance of an individual company.

What main factors drive the movement of stock market indices? ▼

The main factors that drive market volatility are:

• Economic data (GDP, employment, inflation)
• Corporate earnings and news
• Interest rates and central bank policies
• Geopolitical events and global tensions
• Market sentiment and investor confidence
• Supply and demand dynamics in the market

Are indices suitable as an investment option for beginners? ▼

Indices can give clients the opportunity to gain an overall view of a sector or the entire stock market, rather than focusing on a single stock and its performance. We provide educational materials and support from our staff in helping you learn about our products and assist you on your trading journey. When trading, you should only use risk capital —money you can afford to lose.

Is it advisable to use leverage when trading indices? ▼

It is a personal choice. Access to leverage allows you to place trades that require less capital. However, you should understand the risks of leverage and trade responsibly. You should only ever use risk capital when trading, money you can afford to lose.

What are indices in trading? ▼

Indices trading involves speculating on the price movements of stock market indices rather than individual stocks. An index (plural: indices) is a benchmark that tracks the performance of a group of selected stocks, usually representing a specific market, sector, or region.

Can a beginner start trading indices? ▼

Yes, beginners can start trading indices. Indices provide clients the opportunity to gain an overall view of a sector or the entire stock market, rather than focus on the performance of an individual stock. We offer educational materials and support from our staff in helping you understand our products and guide you on your trading journey. Whenever trading, you should only use risk capital —money you can afford to lose

What is MT5 (Meta Trader 5)? ▼

MetaTrader 5 (MT5) is a multi-asset electronic trading platform used for trading financial markets such as forex, indices, commodities, stocks, and cryptocurrencies. Developed by MetaQuotes, it is the successor to MetaTrader 4 (MT4) and is widely used by brokers and retail traders worldwide. Please note that Crypto is not available to retail clients.

How do I download and install MT5? ▼

Once your account is opened, we will provide you with the download link for the desktop platform. You can access the web platform through the link we supply, and for mobile trading, you can download MT5 from the Android or iOS app stores.

Is MT5 free to use? ▼

Yes, we do not charge a platform fee; however, trading may involve costs such as spreads, commissions, or other fees charged by your broker.

What is the difference between MT4 and MT5? ▼

MT4 was designed mainly for Forex traders, offering simplicity, reliability, and strong support for automated trading (Expert Advisors). MT5 is its more advanced successor, built for multi-asset trading across Forex, stocks, commodities, indices, and futures. While MT4 has fewer timeframes and order types, it remains popular for currency trading due to its large community and tools. MT5, however, provides more powerful features such as additional charting options, faster back testing, depth of market, an integrated economic calendar, and support for both hedging and netting. In short, MT4 is ideal for Forex-focused traders, while MT5 offers broader capabilities for traders looking to access multiple markets.

How do I create a demo account on MT5? ▼

Please contact our support team at support.uk@lunaro.com, and we will be happy to set one up for you.

Can I trade forex, stocks, and crypto on MT5? ▼

Yes, you can. Depending on your client classification, MT5 supports a wide range of asset classes across our CFD and Spread Betting products. With our offering, you can trade a variety of other markets through the MT5 platform on web, desktop, or mobile. Note crypto CFD and spreadbet products are not available to retail clients in the UK.

How do I log in to my MT5 trading account? ▼

You will receive your login account number and password by email, and you can select our company from the list of servers when logging in. If you need any assistance, our support team is available to help.

Is MT5 available on mobile? ▼

Yes, you can download MT5 as an app for iOS or Android.

Can beginners use MT5 for trading? ▼

Yes, you can trade on MT5 whether you are a beginner or an advanced trader, provided you meet the appropriateness requirements when applying for an account with us. We offer support and educational resources to help you understand the platform and the products we provide.

What does CFD stand for? ▼

CFD stands for ‘Contract for difference’. It is a financial derivative that allows you to speculate on the rise and fall of an underlying market, such as shares, indices, commodities, or forex, without taking ownership of that asset.

How can I start trading CFDs? ▼

You can start trading in CFDs by submitting an application for a trading account. Once your application is approved, you can trade the product(s) of your choice by searching for them on the platform and executing trades via our web, desktop, or mobile platforms.

How can I use CFDs for hedging purposes? ▼

You can use CFDs to hedge your other holdings by opening a short position with a CFD on the same asset you already own. If the market drops, the gain on the CFD can help offset the loss on your holding.

What is the difference between CFDs and futures? ▼

CFDs are traded over-the-counter with your broker, have no expiry date, offer flexible position sizes, but can become more expensive over time because of overnight financing costs.

Futures are traded on an exchange, are fully standardised in size and expiry, must be closed or rolled over when the expiry date arrives, usually have lower long-term costs, but are less flexible and often require more capital.

Do CFDs have an expiration date? ▼

CFDs are good till cancelled, meaning they roll over nightly until the trade is closed. They do not have an expiry date unless otherwise stated, which can be the case with CFD futures and CFD forwards.

What exactly is a CFD? ▼

A Contract for Difference (CFD) is a derivative that allows you to speculate on the rise and fall in the price of an underlying market such as shares, FX, commodities, or indices, without taking ownership of the actual asset.

How do I make a profit or incur a loss on a CFD? ▼

Your profit or loss is based on the difference between the price you open and the price you close your CFD position. If the market moves in your favour, you shall profit; if it moves against you, you lose. Any additional costs, such as financing charges, swap rates, or currency conversion effects, are also subtracted from your overall profit or loss on the position.

Do I own the underlying asset when trading CFDs? ▼

No, you do not own the underlying asset when trading a CFD.

What are the main risks of trading CFDs? ▼

CFDs give you exposure to the following risks, mainly:

• Market risk – CFD prices mirror the underlying asset, so any unfavourable price movement will reduce the value of your position. Because markets can move quickly and unpredictably, losses can occur rapidly.
• Leverage risk – CFDs are leveraged products, meaning you can control a large position with a relatively small deposit. While this amplifies potential gains, it also magnifies losses. Even small market movements can result in losses greater than your initial investment if high leverage is used.
• Counterparty risk – Since CFDs are over-the-counter products, you rely on your broker to execute trades and honour payouts. If the broker becomes insolvent or experiences operational failure, you may be unable to recover funds or close open positions.
• Market volatility and gapping – In highly volatile conditions, prices may move in sudden jumps (“gaps”) rather than continuously. This can cause stop-loss orders to execute at worse-than-expected levels, increasing potential losses.
• Risk of margin call or account close-out – If your account equity falls below the required margin level, the broker may issue a margin call or automatically close your positions. This can crystallise losses at an unfavourable time and is also known as liquidation.
• Liquidity risk – In illiquid or thin markets, it may be difficult to enter or exit positions at your desired price. Wider spreads and slippage can increase trading costs and result in trades being filled at significantly worse prices.

What is a pip in CFD trading? ▼

A pip is the tradable point in CFD trading. This means your position size correlates to the pip value you change, e.g., one standard lot of FTSE equals £10 per pip movement. If the market moves 5 pips, this is a profit or loss of £50.

What are spreads in CFD trading? ▼

The spread is the difference between the buy and sell price. It’s a built-in cost you pay when opening a CFD trade.

Do you provide margin-free hedging options? ▼

This is dependent on the classification of your account. Retail traders in accordance with regulation cannot have margin offsets.

What does “underlying asset” refer to in CFDs? ▼

The underlying asset refers to the product you are trading, such as Brent crude oil or physical gold.

Which assets are available for trading as CFDs? ▼

With a CFD you can trade the following asset classes FX, Indices, Commodities, Equities, treasuries and crypto currencies. Please note Crypto is not available to retail clients.

What does short selling mean in CFD trading? ▼

Speculating for the price to fall on a given market.

How can I use CFDs to diversify my portfolio? ▼

CFDs can be used to trade multiple asset classes such as FX, commodities, treasuries, shares, and indices. You also have access to leverage and gain exposure to a market in a less capital-intensive manner. It also allows you to take short positions where you can gain from downward market moves or even hedge the risk of your underlying assets depreciating.

Is CFD trading legal in my region? ▼

We are a UK-domiciled financial institution and have clients from around the world. However, due to certain legal and regulatory restrictions, we may not permit citizens or residents of certain countries to open an account with us. Please contact our support team for further information.

Is trading CFDs considered safe? ▼

CFD's are complex products and are deemed high-risk products due to their speculative nature and leverage.

What is Spread betting? ▼

Financial spread betting is a leveraged derivative product that allows individuals to speculate on the price movements of financial markets, such as indices, currencies, commodities, Crypto currencies or shares without owning the underlying asset. Clients place a bet on whether the price of a chosen market will rise or fall, and their profit or loss is determined by the accuracy of that prediction and the extent of the market’s movement.
Spread betting can be tax free, Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK. Should you have any questions with regards to your personal tax circumstances you should seek independent professional advice.
Spread betting involves margin and leverage, therefore is a high risk product. It is primarily available to residents of the United Kingdom and Ireland and may not be permitted in other jurisdictions. Please note that Crypto currency trading on spreadbets is not available to retail traders.

How can I start trading Spread bets? ▼

You can start trading in Spread betting by submitting an application for a trading account. Once your application is approved, you can trade the product(s) of your choice by searching for them on the platform and executing trades via Spread betting on our web, desktop, or mobile platforms.

How can I use spread bets for hedging purposes? ▼

You can use spread bets to hedge your other holdings by opening a short position with a spread bet on the same asset you already own. If the market drops, the gain on the spread bet can help offset the loss on your holding.

How do I make a profit or incur a loss on a Spread bet? ▼

Your profit or loss is based on the difference between the price you open and the price you close your Spread bet position at. If the market moves in your favour, you shall profit; if it moves against you, you lose. Any additional costs, such as financing charges are also subtracted from your overall profit or loss on the position.

Do I own the underlying asset when trading Sread bets? ▼

No, you do not own the underlying asset when trading a spread bet, you are purely speculating on the price change.

What are the main risks of trading Spread bets? ▼

Spread bets give you exposure to the following risks, mainly:

• Market risk – Spread bet prices mirror the underlying asset, so any unfavourable price movement will reduce the value of your position. Because markets can move quickly and unpredictably, losses can occur rapidly.
• Leverage risk – Spread bets are leveraged products, meaning you can control a large position with a relatively small deposit. While this amplifies potential gains, it also magnifies losses. Even small market movements can result in losses greater than your initial investment if high leverage is used.
• Market volatility and gapping – In highly volatile conditions, prices may move in sudden jumps (“gaps”) rather than continuously. This can cause stop-loss orders to execute at worse-than-expected levels, increasing potential losses.
• Risk of margin call or account close-out – If your account equity falls below the required margin level, the broker may issue a margin call or automatically close your positions. This can crystallise losses at an unfavourable time and is also known as liquidation.
• Liquidity risk – In illiquid or thin markets, it may be difficult to enter or exit positions at your desired price. Wider spreads and slippage can increase trading costs and result in trades being filled at significantly worse prices.

What is a pip in spread betting trading? ▼

A pip is the tradable point in a spread bet. This means your position size correlates to the pip value you change, e.g., one standard lot of FTSE equals £10 per point movement. If the market moves 5 pips, this is a profit or loss of £50.

What are spreads in spread betting trading? ▼

The spread is the difference between the buy and sell price. It’s a built-in cost you pay when opening a spread bet.

Do you provide margin-free hedging options? ▼

This is dependent on the classification of your account. Retail traders in accordance with regulation cannot have margin offsets.

What does “underlying asset” refer to in spread betting? ▼

The underlying asset refers to the product you are trading, such as Brent crude oil or physical gold.

Which asset classes are available for trading on spread bets? ▼

The following asset classes are available on spread bets: FX, Indices, Commodities, Equities, treasuries and crypto currencies. Please note Crypto is not available to retail clients.

What does short selling mean in spread bet trading? ▼

Speculating for the price to fall on a given market.

How can I use spread bets to diversify my portfolio? ▼

Spread bets can be used to trade multiple asset classes such as FX, commodities, treasuries, shares, and indices. You also have access to leverage and gain exposure to a market in a less capital-intensive manner. It also allows you to take short positions where you can gain from downward market moves or even hedge the risk of your underlying assets depreciating.

Is Spread betting legal in my region? ▼

We are a UK-domiciled financial institution and have clients from around the world. However, due to certain legal and regulatory restrictions, we may not permit citizens or residents of certain countries to open an account with us. Please contact our support team for further information.

Is spread betting considered safe? ▼

Spread bets are complex products and are deemed high-risk products due to their speculative nature and leverage.

Is spread betting tax free? ▼

Spread betting is generally tax free in the UK and Ireland as it is considered a form of gambling by HMRC, meaning that profits from spread betting are exempt from capital gains tax and do not require stamp duty. However, if spread betting becomes a primary source of income, it may be subject to income tax. Additionally, it's important to consult with a tax advisor for personalized advice based on individual circumstances.

What’s a position? ▼

In trading, a position represents your investment in a particular asset. There are two types of positions:
Long position: You buy an asset, hoping its price will rise.
Short position: You sell an asset you do not own, expecting its price to fall.

If a position is still active, it is called an open position. Once the trade has been completed, it is referred to as a closed position.

What’s a pending order? ▼

A pending order is an instruction to buy or sell an asset at a specific price that differs from the current market price. It has not yet been executed, so it is not considered an actual trade. The purpose of a pending order is for it to be executed automatically once the market price reaches the level you have set, allowing you to enter the market under predefined conditions without needing to monitor the price constantly.

What is the difference between Take Profit & Stop-Loss orders? ▼

A stop-loss order and a take-profit order are both tools for risk management you can use when it comes to trading. They are instructions that you can attach to an open position to automatically close it at a specific price.
Stop-loss order: Closes your position at a predetermined price if the market moves against you, helping to minimise potential losses.
Take-profit order: Closes your position at a set price to secure profits before the market reverses.

What does Leverage Mean? ▼

When you trade with leverage, only a percentage of the total trade value is required by the broker. The rest of the trade is financed by the broker or financial institution. The leverage ratio indicates how much larger your position is compared to your margin (the amount of capital required by your broker).

This allows traders to potentially gain higher returns with a smaller initial investment. However, the same leverage also means that losses are magnified. If the trade moves against you, your losses could exceed your initial margin, potentially leading to a margin call where you may need to deposit more funds to maintain the position.

For example, if you have a leverage of 10:1, this means you can obtain a position worth 10 times your actual investment. So, with a margin of £1,000, you could trade a position worth £10,000.

What's my account leverage? ▼

For retail accounts, maximum leverage is up to 30:1 when trading on a CFD or spreadbet with us. You should therefore manage your risk accordingly and only ever trade using risk capital, money that you can afford to lose.

What does Swaps Mean? ▼

A swap in trading CFD’s or Spreadbets is the overnight fee you pay to keep a leveraged trade open.

What does spread mean? ▼

Spread is the difference between the buy (ask) and sell (bid) price.

Why was my pending order executed at a different price? ▼

Pending orders can sometimes be executed at a different price if there is a sudden, large price movement (a price gap) due to market volatility. In such cases, the order is filled at the next available price rather than the exact price you set. The difference between the set price and the actual executed price is known as slippage.

On which products do I pay or receive dividends? ▼

A dividend is a payment to its shareholders and represents a portion of a company's profits. In leveraged trading, you do not receive a traditional dividend payment because you do not own the underlying asset. Instead, you receive a dividend adjustment into your trading account, which either adds or subtracts the dividend amount (depending on if your position is long or short). To be eligible for the dividend payment, you need to hold an open position in the stock on the ex- dividend date.

When will I receive my dividend payment? ▼

The dividend will be applied to your account on the ex- dividend date.

What are pips and lots in forex trading? ▼

A pip is the standard unit of measurement for price movements in trading. The value of a pip depends on your position size. For example, one standard lot of GBP/USD has a pip value of $10. If the market moves 5 pips in your favour or against you, this will result in a profit or loss of $50.

Do you offer corporate accounts? ▼

Yes, we are pleased to offer corporate accounts.

What Documents Are Required for Account Verification? ▼

On your application you will be asked to provide valid proof of identity and may be required to provide a valid proof of address issued in the last 3 months.

Does Lunaro Offer Joint Accounts? ▼

Yes, we are pleased to be able to offer joint accounts.

What is a market gap? ▼

Trades and orders can sometimes be executed at a different price if there is a sudden, large price movement and no tradable price is available at the requested level (a price gap), due to market volatility or low liquidity. In such cases, the trade or order is executed at the next best available price rather than the exact price you set. The difference between the set price and the actual executed price is known as slippage.

For example, this can occur between the closing and opening of the market or during high-impact economic events. In the forex market, even when it is closed on weekends, central banks may still trade foreign exchange, which can result in a different price when the market reopens.

What are Lunaro customer support hours? ▼

Our customer support hours are Monday to Friday between 8am and 6pm UK time.

What is margin trading? ▼

Margin or leveraged trading only requires a percentage of the total trade value. The rest of the trade is financed by the broker or financial institution. The leverage ratio indicates how much larger your position is compared to your margin (the amount of capital required by your broker). This allows traders to potentially gain higher returns with a smaller initial investment. However, the same leverage also means that losses are magnified. If the trade moves against you, your losses could exceed your initial margin, potentially leading to a margin call where you may need to deposit more funds to maintain the position. For example, if you have a leverage of 10:1, this means you can obtain a position worth 10 times your actual investment. So, with a margin of £1,000, you could trade a position worth £10,000