Can you really make money spread betting

[piggybridges]

Any speadbet companies have a decent spread on crude oil? (say 2-3 pips rather than the 5 quoted by the various brokers I use? )

 

[cablemonster]

Any speadbet companies have a decent spread on crude oil? (say 2-3 pips rather than the 5 quoted by the various brokers I use? )

Thats why I trade cable. You can get 1 pip spread off the smalls and it can bust 20 pips a day no problem. WTI can bust a move too but the spread is wider off the smalls.

 

[piggybridges]

Thats why I trade cable. You can get 1 pip spread off the smalls and it can bust 20 pips a day no problem. WTI can bust a move too but the spread is wider off the smalls.

I trade pretty much everything, but I do like oil the best I think.

Traded cable today in fact.
It was a good one:

 

[D70]

cable

we are looking at a flexible price model which will widen the spread on higher trade size (and increase margin requirement percentage etc for bigger positions as we have no possible corporate risk from a small trader getting heavily slipped in a spike but a big one with a big position could, theoretically, do us damage) ... but it will not be available for some time.

like i say if your tastes just run to FX then a platform designed just for that might be better ... but i do use the word 'might' as there are advantages to spread betting on the tax front. This is also one of the factors that we (rather than the client) have to take into consideration. Unfortunately Customs and Excise take 3% of client losses from us .. so if a client loses 100 pips on a trade we have to pay 3 pips to the tax man. The numbers all add up.

simon

I didnt know that.
And what if a client 'wins' 100 pips?

 

[Vasco da Banana]

I didnt know that.
And what if a client 'wins' 100 pips?

It's never happened!

 

[capitalspreads]

D70
winnings and losses are netted off (but we cannot net off hedging losses). This is why one of the DMA spread betting companies charges an extra 1.8% if you lose. As the trades are actually put through to the market and as they only charge a commission they must protest themselves against a major loss by a client. I.e if the client losses £1m the hedge will have also lost £1m but the spread betting company cannot offset hedging losses against gaming duties. So the SB company will end up with a £30k bill (oddly enough in these highly regulated times the tax man positively encourages spread betting companies to take greater risk by not hedging !)

Prospreads are based in Gib and do not have this problem as gaming laws are different over there.

Simon

 

[kjw88]

I'm currently spread betting using IG, have an acquaintance (friend of a friend) who says you can make decent money with binary options, but certain companies look like they could be a bit of a scam in terms of withdrawing profits. Any thoughts?

 

[stephen2003]

obviously you can make money but you must get it right.

 

[forex999]

I'm currently spread betting using IG, have an acquaintance (friend of a friend) who says you can make decent money with binary options, but certain companies look like they could be a bit of a scam in terms of withdrawing profits. Any thoughts?

The problem with so many morons are that everything out there is a "scam", the traders out there points fingers to all but never point any fingers to the self!

i trade binaries all the time, nearly 60% of my trades are losing trades, but the remaining 40% are BIG BIG BIG winners

so yes, if you know what you doing, have a strategy then you can make tons of money!
low risk trades

 

[traderbinary]

The problem with so many morons are that everything out there is a "scam", the traders out there points fingers to all but never point any fingers to the self!

i trade binaries all the time, nearly 60% of my trades are losing trades, but the remaining 40% are BIG BIG BIG winners

so yes, if you know what you doing, have a strategy then you can make tons of money!
low risk trades

Hi

Have you traded binaries with IG? Was wondering what your experience with them is like and their views on winning traders.

Look forward to hearing from you

 

[traderbinary]

obviously you can make money but you must get it right.

Hi

Have you traded binaries with IG? I would be grateful for feedback on how the view winning traders.

Many thanks

 

[CityMasterTrader]

Making money from shares/CFDs/spreadbetting in whatever asset class (equities, indices, FX, commodities) is not about getting it every trade right. It's about discipline - making sure losses are managed and kept small (if it's gone wrong, move on; use stop losses, but allow realistic breathing space) and making sure that the few trades that are profitable deliver sufficient gains (multiples of the losses) to cover several losses. Think 'risk vs. reward'. :smart:

 

[Skanza]

There's no reason why you cannot make money providing you follow the correct principles. You don't need to be a mathematical genius or a statistician, just some core principles and simple traits.

The method you use to obtain profit shouldn't matter too much if you have the core principles i.e. stocks, CFDs, spread betting etc.

 

[lucas_king]

Basically spread betting is investing on the indices whereas with CFDs investing is on equities. I love CFDs rather than Spread betting.

 

[timsk]

Basically spread betting is investing on the indices whereas with CFDs investing is on equities. I love CFDs rather than Spread betting.

Hi Lucas,
I don't know where you've got your information from - but I'm afraid you're labouring under a misapprehension - and quite a big one!

Spread betting and CFDs are identical in so far as both of them are merely a vehicle by which a trader has access to the market. To use an analogy, think of a baker. To bake bread, a tin is required to put the dough in. Tins can be square, round or rectangular etc. and equate to spread betting, CFDs and options etc. The tin is the vehicle in which bread is baked, spread betting and CFDs are the vehicle by which people trade the markets. The dough can have all kinds of different ingredients to produce a huge variety of different bread types. The dough equates to different markets, e.g. equities (Google, Facebook, Vodafone), commodities (oil, gold, coffee) and indices (Dow, FTSE 100 and Dax) etc., etc.

So, based on the above, hopefully you can see that you can trade a wide range of different markets - and individual instruments within those markets - via either spread betting or CFDs. To understand more about the similarities and differences of these trading vehicles, check out this FAQ: What are the Pros and Cons of Spread Betting Vs CFDs?
Tim.

 

[lucas_king]

Hi Lucas,
I don't know where you've got your information from - but I'm afraid you're labouring under a misapprehension - and quite a big one!

Spread betting and CFDs are identical in so far as both of them are merely a vehicle by which a trader has access to the market. To use an analogy, think of a baker. To bake bread, a tin is required to put the dough in. Tins can be square, round or rectangular etc. and equate to spread betting, CFDs and options etc. The tin is the vehicle in which bread is baked, spread betting and CFDs are the vehicle by which people trade the markets. The dough can have all kinds of different ingredients to produce a huge variety of different bread types. The dough equates to different markets, e.g. equities (Google, Facebook, Vodafone), commodities (oil, gold, coffee) and indices (Dow, FTSE 100 and Dax) etc., etc.

So, based on the above, hopefully you can see that you can trade a wide range of different markets - and individual instruments within those markets - via either spread betting or CFDs. To understand more about the similarities and differences of these trading vehicles, check out this FAQ: What are the Pros and Cons of Spread Betting Vs CFDs?
Tim.

Thanks Tim,
My mistake, you're right. What I meant was I like the fact that CFDs give me the DMA for shares whereas indices most suited to spread betting.

 

[EdGasket]

The bulk of replies on here refer to using graphs amd moving averages to pick entry points. Has anyone traded successfully based on whether a share is under or over-valued on fundamentals i.e. things like PE, tangible assets, director buys or is the time frame too long for these things to come into play?

 

[timsk]

The bulk of replies on here refer to using graphs amd moving averages to pick entry points. Has anyone traded successfully based on whether a share is under or over-valued on fundamentals i.e. things like PE, tangible assets, director buys or is the time frame too long for these things to come into play?

Hi Ed,
Welcome to T2W - cool username btw!


My reply to your question is a generalisation but, as generalisations go, I think it's a good'n. One of the key differences between an investor and a trader is timescale. The former think in terms of many months through to many years. The latter think in terms of many seconds through to many hours. Fundamentals like PE will have very little impact - if any at all - on the very short term horizon of the trader. The main reason for this is that by their very nature, most fundamentals are severely lagging. For that reason, few traders look to fundamentals such as PE to trade from. Just to be clear, major economic data constitutes fundamental data - and traders do trade from that because the market moves (sometimes) the instant it's released.
Tim.

 

[potshot]

Open a CFD account and a SB account watch the prices and how the markets move on both accounts and you will see how much the SB's manipulate their price compared to the real market price.