0 margin trading via spread betting

[Gamble100]

Hi,

Is it possible to trade with a spread bet firm not using leverage? Say I want to bet on a stock going higher then what would be costs involved holding that position open for 1 month? As far as I understand it even if you have funds deposited with them they will still apply a margin so that they can make money from you holding that bet open?

Thanks

 

[malaguti]

Hi,

Is it possible to trade with a spread bet firm not using leverage? Say I want to bet on a stock going higher then what would be costs involved holding that position open for 1 month? As far as I understand it even if you have funds deposited with them they will still apply a margin so that they can make money from you holding that bet open?

Thanks

yes it is possible, I know that gecko markets allow you to adjust the setting so that there is no leverage and therefore no additional overnight finance charges, just like owning shares..just better!

 

[guidfarr]

yes it is possible, I know that gecko markets allow you to adjust the setting so that there is no leverage and therefore no additional overnight finance charges, just like owning shares..just better!

just because providers offer leverage doesn't mean that you have to utilise it:
What is Leverage?

 

[yellowfloyd]

Hi,

Is it possible to trade with a spread bet firm not using leverage? Say I want to bet on a stock going higher then what would be costs involved holding that position open for 1 month? As far as I understand it even if you have funds deposited with them they will still apply a margin so that they can make money from you holding that bet open?

Thanks

Interesting question! I looked into this myself.

Unfortunately, the answer is no as well as yes.

You can negate the effect of leverage with SB. All you need to do is put in the full amount of the exposure. So, say you’re long Vodafone, margin of £500 and a £10k position (you’ll have to work out the exposure - £10 per point is 1000 shares), you could put in £10,000 cash (only using £500). Therefore, you negate the effect of leverage.

Unfortunately, however, you’d still pay financing/rollover charges on this (the £10k).

Nice idea though!

 

[barneydunn]

Out of interest I am long Barclays and up about 22 points at £10 a point and my total charge so far is £2.80 so a little over 1%. I've held the trade for about 12 trading days so that gives you an idea of what it would cost you for a month. About £5. Interestingly this is about the same as the spread on this share so my total costs including spread and overnight fees for holding for a month would be about £10. I don't think that's two bad when you consider that buying shares outright still costs £12.50 each way in a lot of places.

 

[tar]

Hi,

Is it possible to trade with a spread bet firm not using leverage? Say I want to bet on a stock going higher then what would be costs involved holding that position open for 1 month? As far as I understand it even if you have funds deposited with them they will still apply a margin so that they can make money from you holding that bet open?

Thanks

Try CMC CFD account , you can choose your leverage level , so no leverage = no financing costs .

 

[malaguti]

Interesting question! I looked into this myself.

Unfortunately, the answer is no as well as yes.

You can negate the effect of leverage with SB. All you need to do is put in the full amount of the exposure. So, say you’re long Vodafone, margin of £500 and a £10k position (you’ll have to work out the exposure - £10 per point is 1000 shares), you could put in £10,000 cash (only using £500). Therefore, you negate the effect of leverage.

Unfortunately, however, you’d still pay financing/rollover charges on this (the £10k).

Nice idea though!

the answer still remains yes. You DO NOT have to pay finance and rollover charges.
Look around, I have mentioned one such SB company and Tar has just mentioned another but with CFDs. With the amount of funds in the account and the ability to select your own leveraging the OP is able to do exactly as he pleases