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Both binary options and financial spread betting allow you to make a prediction about an underlying financial instrument and then win or lose money based off of what happens.
If you lose, the amount of money you get back will also be fixed at a certain percentage. So say you are looking at the price of gold and you think it will go up during the expiry period. If you think the price is going up, you buy, if you think the price is going down you sell. The big difference is you do not fix your risk when you select how much money youre wagering on an outcome with financial spread betting.