Advantages: Gains can be unlimited, Bets are free of capital gains tax, stamp duty and income tax.

Allows investors make money in a falling market.

Access to positions requires much lower capital outlay than share purchase - for instance a €10 a point gamble on a particular share gives the equivalent exposure to ownership of 10,000 shares in the same company.

Bets require the payment of only a fraction of the stake upfront.

Spread-betting allows small investors access to futures markets.

Bets can be for as low as €1 a point, far below the cost of other entry to equivalent markets.

No commissions or dealing fees; the only charge is the spread.

Spread-betting allows investors deal when markets are closed.

You can trade in a range of different markets through the one spread-betting account.

Disadvantages:

Losses can be sudden and unlimited without a stop loss position.

Geared nature of spread-betting magnifies market moves and increases volatility.

If losses arise, they cannot be set against an investor's capital gains on other investments as is the way with share purchases.

Spread-betting is not a long- term strategy but a once-off gamble.

Spread-betting on shares grants investors no rights to dividends or other rights of shareholders.