Manningjd said:Is spread-trading tax free, as spread-betting is?
McStay said:In a regular futures contract or spread-contract, this is possible. One contract is a distinct entity which can stand by itself, and should not prevent you from buying another contract which represents taking an opposite position. Of course, one can also choose to adjust their initial position by closing out part of the initial contract. Please, tell me why this should be impossible, as long as you have the funds to take that position.
thx.
capitalspreads said:I cannot comment to this guy as he has absolutely no comprehension of trading or how 'our quotes' are made. No matter how many times we explainded it. His every comment shows how little he actually understands about financial market trading.
capitalspreads said:I would be interested to see a direct access platform that allowed you to buy June FTSE contracts and then sell them without closing the position (!!) or do the same with a share or FX contract. (I would imagine that your margin costs would be enormous!)
capitalspreads said:His comment about double the spread is to do with the fact that stops get hit on an 'our quote' basis and he reckons that as he has already paid the spread in getting into the position so the stop should only be activated if the entire spread quote goes through his stop level.
So that if his stop was to sell GBP/USD at 1.8310 he would only be hit when the price went to 1.8307-10 not when the price went to 1.8310-13
One wonders how he thinks we could hedge his trades if we lost three pips on every stop exit!!
capitalspreads said:As I say you cannot please all the people all the time and we have done well to have this thread going for so long before attracting a losing ranter.
In anticipation of a futher comment from mr McStay ..
please open an account with a direct access broker and see when your stops are activated.
mburdge said:McStay,
Don't give up on spread betting. I know nothing about capital spreads, but I have used D4F for over 2 years without a hitch.
Their spreads are a tight as anyone's, they have now (finally) got excellent charts and the system is totally robust.
I have never had any issues with the legitimacy of stops that get hit etc.
I have searched the market for direct access brokers that can add any value to me, such as tighter spreads, lower margin requirements, stable and reliable platform; but not found anything better.
Add in the tax free element and I can't see me changing until have I have made enough money to go offshore!
I'm not the greatest trader yet, but I know I can't blame the tools provided!
happy trading
mburdge said:Neil,
Agreed, you may get slightly tighter spreads than 3 pts from some brokers, but for most smallish traders, a good spreadbet platform is fine. (and tha tax advantage is a bit advantage)
I'll tell you what though: If most traders concentrated on their trading skills, discipline and money management instead of worrying about brokers, the odd pip per trade would become irrelevant!!
capitalspreads said:...In FX you may find a platform with tighter spreads than us. I believe there is one out there ! But I have yet to receive any positive comments from clients who are using it
Simon