Hi iam new to spread betting, was looking at the FTSE this morning using global trader 247 trading platform , i also had the ftse spot chart, what i cant seem to figure out is on the spot chart movement was fairly pedestrian and predictable at the time, but on the futures chart there was one candle that went short 30 points. Any comments would be apreciated.
Lee Shepherd
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Take advantage of the spikes, if its in your favour then hit a sell, if its in someone else's favour then buy more so when it corrects you gain as well. Spreaders will usually give prices that are just out of actual market price and its not unusual to see that your price has moved up and down below or above the underlying market. As long is ranges back to or in line with target market then you'll be fine or maybe not(money management)
I always find that people complain the 'absurd' movement has bust them on a few points, God forbid there would be a day when the market moves quickly. SB companies prices are always out in comparison to on line brokers due to the wide spreads they have, they dont usually charge commission so have to make there money from somewhere, although in U.K due to it being covered under the gambling law theres no income or capital gains tax so what you earn is yours.
I always find that people complain the 'absurd' movement has bust them on a few points, God forbid there would be a day when the market moves quickly. SB companies prices are always out in comparison to on line brokers due to the wide spreads they have, they dont usually charge commission so have to make there money from somewhere, although in U.K due to it being covered under the gambling law theres no income or capital gains tax so what you earn is yours.
Two points here - 'SB companies... are always out...due to wide spreads'. If you mean that the prices aren't the same, then true, but the spread on shares and FX should be either side, so they should be the same plus or minus spread. Not sure how you can take advantage in this case. More importantly, most charts are based on the MID price, so should be the same as charts from any other broker; spread doesn't really come into it.
Secondly, SB is free of Capital Gains Tax, not Income Tax. For anyone who doesn't invest for a living, profits would fall under CGT. If it was your main source of income, it could fall under income and therefore be taxable.
I saw a different explanation regarding the taxation issue.Some've said that no matter how much the gambler earns,spread betting is gambling activity and thus non-taxable.
So,from you guys experience,which one is true?
I think there's at least one thread on this, which I admit I haven't read. It ought to boil down to the fact that gambling isn't generally classed as an income. To say that it's free of income tax is unequivocally wrong though. If the profit were classed as income, it would be different, but luckily profit from trading is deemed a capital gain.
I experienced one of these mysterious spikes recently on IG Index but I was not stopped out even though the spike went way below my stop. If I dont get stopped out I dont care.
I guess the question to ask is if anyone has been stopped out because of one?
My contract was quarterly.
I guess the question to ask is if anyone has been stopped out because of one?
My contract was quarterly.
Lee Shepherd
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ns1000
Sorry bud, your wrong.
With you being in the U.K you can easily check this out with an acountant or better still check with the tax office/inland revenue themselves, its a price of a local call or look for free on the internet on there official website.
You will pay no capital gains tax, no stamp duty and no commission on spread betting trades and as its not classed as an income cannot be taxed under current legislation.
As for taking advantage, work it out. You trade the price given so if its out by a few points and doesn't correct then you still exit at the said 'incorrect price'. If it does correct then depending on which side your on, you win or lose the difference. Swings and roundabouts or ups and downs.
The bottom line has got to be, if you dont like them, use a brokerage house but at least get the info correct, when trading, the correct information finding is crucial.
Good luck.
Sorry bud, your wrong.
With you being in the U.K you can easily check this out with an acountant or better still check with the tax office/inland revenue themselves, its a price of a local call or look for free on the internet on there official website.
You will pay no capital gains tax, no stamp duty and no commission on spread betting trades and as its not classed as an income cannot be taxed under current legislation.
As for taking advantage, work it out. You trade the price given so if its out by a few points and doesn't correct then you still exit at the said 'incorrect price'. If it does correct then depending on which side your on, you win or lose the difference. Swings and roundabouts or ups and downs.
The bottom line has got to be, if you dont like them, use a brokerage house but at least get the info correct, when trading, the correct information finding is crucial.
Good luck.
gamma
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Secondly, SB is free of Capital Gains Tax, not Income Tax. For anyone who doesn't invest for a living, profits would fall under CGT. If it was your main source of income, it could fall under income and therefore be taxable.
This issue only arises if you decide to invite trouble by informing the tax man about trading for a living
You don't tell the taxman about bets you might place horse racing if you are a horse better.
Although from what I have read on other threads points to the tax man not really being bothered about it.
This issue only arises if you decide to invite trouble by informing the tax man about trading for a living
You don't tell the taxman about bets you might place horse racing if you are a horse better.
Although from what I have read on other threads points to the tax man not really being bothered about it.
Lee Shepherd
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Post is for British law only(Scotland,N.I may differ)
It's best to always be honest, especially true with the tax man. By not inviting him/her in can and possibly will cause more problems the longer you let it run, keep all records on money won/obtained. If in doubt or are taking large profits on spreadbetting and especially if you tell the banks or lenders or any credit house that you gamble can cause problems. Like it or not(most dont) spreadbetting IS gambling. This makes it more difficult to obtain credit and can reflect in the rates you get as it cannot be classed (legally) as an income. I've been 'trading'(gambling) with the markets(spreadbetting) for almost 4 years and know all too well the inherrent problems with trying to explain to credit houses that I'm classed as a proffessional gambler(although I prefer to call myself a trader). You need to make that clear otherwise you can fall into the trap of obtaining credit by deception which is a criminal offence. A man who bets on horses cannot call himself a horse evaluer by proffession, he is a gambler who wins money by evaluting horses.
Check with the tax man at least to put your mind at rest. Dont take my word for it or anyone else's, always check yourself. Also if I'm wrong then we can sue all the spreadbetting firms that also back up what I'm saying.
You will pay no capital gains tax, no stamp duty and no commission on spread betting trades and as its not classed as an income cannot be taxed under current legislation.
It's best to always be honest, especially true with the tax man. By not inviting him/her in can and possibly will cause more problems the longer you let it run, keep all records on money won/obtained. If in doubt or are taking large profits on spreadbetting and especially if you tell the banks or lenders or any credit house that you gamble can cause problems. Like it or not(most dont) spreadbetting IS gambling. This makes it more difficult to obtain credit and can reflect in the rates you get as it cannot be classed (legally) as an income. I've been 'trading'(gambling) with the markets(spreadbetting) for almost 4 years and know all too well the inherrent problems with trying to explain to credit houses that I'm classed as a proffessional gambler(although I prefer to call myself a trader). You need to make that clear otherwise you can fall into the trap of obtaining credit by deception which is a criminal offence. A man who bets on horses cannot call himself a horse evaluer by proffession, he is a gambler who wins money by evaluting horses.
Check with the tax man at least to put your mind at rest. Dont take my word for it or anyone else's, always check yourself. Also if I'm wrong then we can sue all the spreadbetting firms that also back up what I'm saying.
You will pay no capital gains tax, no stamp duty and no commission on spread betting trades and as its not classed as an income cannot be taxed under current legislation.
That´s the point. It's not free of income tax, it's just not classed as income. If you were to decide it was your living and inform the taxman that it was your income for whatever reason, you would have to pay. You be an idiot to do so, but that's still the situation.
[/QUOTE]
As for taking advantage, work it out. You trade the price given so if its out by a few points and doesn't correct then you still exit at the said 'incorrect price'. If it does correct then depending on which side your on, you win or lose the difference. Swings and roundabouts or ups and downs.
Good luck.[/QUOTE]
Not sure that most people would call a few points a spike.
Lee Shepherd
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Sorry mate, misunderstood your post.
Your right though, theres no point in calling it your income as if it was to be recognised as this then very likely would face having to pay tax on it. Credit houses would still have to legally class it under the official title,'Gambling' so would not benefit anyone in the slightest. I was just trying to clear up peoples misconception over spread betting firms and the tax issue that people seem to get confused with.
With regards to spikes and not being a few points, if it spikes considerably more as a percentage of the target market then you can contest it with the guilty company or if prefer just change companies, theres plenty out there to chose from. The few points I was referring to are the ones I get often but if we're talking spikes (people 's interpretation)of magnatude then these I haven't experienced on my platform for the 4 years I've been with them. Nor my trading partner or any of my other trading contacts from another forum I'm a member of.
What it could be as errors in the graphs they are viewing and not the actual price quoted. This I've witnessed.
Your right though, theres no point in calling it your income as if it was to be recognised as this then very likely would face having to pay tax on it. Credit houses would still have to legally class it under the official title,'Gambling' so would not benefit anyone in the slightest. I was just trying to clear up peoples misconception over spread betting firms and the tax issue that people seem to get confused with.
With regards to spikes and not being a few points, if it spikes considerably more as a percentage of the target market then you can contest it with the guilty company or if prefer just change companies, theres plenty out there to chose from. The few points I was referring to are the ones I get often but if we're talking spikes (people 's interpretation)of magnatude then these I haven't experienced on my platform for the 4 years I've been with them. Nor my trading partner or any of my other trading contacts from another forum I'm a member of.
What it could be as errors in the graphs they are viewing and not the actual price quoted. This I've witnessed.
