Spread Betting For Suckers

[jkane]

Why??

Its impossible to overcome rip off spreads

Trade in USA Futures markets only with Brokers

I laugh at all the suckers losing their shirts at spread betting firms and already being down like 6 points on a SP 500 Spread to start a trade

SP Mini Future 1 lot and your down $12.50 initially plus a $5 round turn commission

Spread Betting firm same type trade your down approx $25-$30 to start the trade

I know zero taxes in UK but your still way better off making that same trade in USA Futures Exchange

 

[tar]

Why??

Its impossible to overcome rip off spreads

Trade in USA Futures markets only with Brokers

I laugh at all the suckers losing their shirts at spread betting firms and already being down like 6 points on a SP 500 Spread to start a trade

SP Mini Future 1 lot and your down $12.50 initially plus a $5 round turn commission

Spread Betting firm same type trade your down approx $25-$30 to start the trade

I know zero taxes in UK but your still way better off making that same trade in USA Futures Exchange

There are advantages and disadvantages as well , what about Dax , Dow , Ftse ... etc all are offered with 1-2 points spread max which is good , what about size flexibility , example : you don't have to trade a full Dax contract - 25 euros/point - ... etc .

Check my signature

 

[jkane]

I think the only advantages and I will throw in cfd brokers also is what you mention about lower bet sizes and of course lower margins you need to trade

as far as trying to make money though tough odds

A lot of different opinions

 

[peakoil]

I love it when our US friends occasionally stop by, to reassure us that we're alleged 'suckers' for spread-betting.

Well O.P., thank you for that, but from my experience, I don't agree with your sentiments. And what's more, may I respectfully ask (seeing as your profile is empty) what experience have you accumulated in your lifetime, with any particular spread betting company?

Why??

Its impossible to overcome rip off spreads

Trade in USA Futures markets only with Brokers

I laugh at all the suckers losing their shirts at spread betting firms and already being down like 6 points on a SP 500 Spread to start a trade

SP Mini Future 1 lot and your down $12.50 initially plus a $5 round turn commission

Spread Betting firm same type trade your down approx $25-$30 to start the trade

I know zero taxes in UK but your still way better off making that same trade in USA Futures Exchange

 

[jkane]

If your going to trade use CFD's slightly better spreads

Spread Comanies cannot lose because of wide spreads, all they do is hedge

Bank Of America traded in USA has 1 cent spread at US brokers, spread betting wise you get killed

The lower margin requirements make is appealing in the UK

 

[Trader333]

Spread Comanies cannot lose because of wide spreads, all they do is hedge

Most of them don't hedge unless a very large position is placed.

The lower margin requirements make is appealing in the UK

It is also tax free which is not an option for those in the US

 

[ffsear]

Bank Of America traded in USA has 1 cent spread at US brokers, spread betting wise you get killed
UK

Killed? Looking at my spread betting platform, i pay 3c spread on BOA. No costs, no tax. What i see is what i get.

As long as i'm not scalping for tiny movments (mugs game anyway!) How is 2 extra points killing me?

 

[tar]

Killed? Looking at my spread betting platform, i pay 3c spread on BOA. No costs, no tax. What i see is what i get.

As long as i'm not scalping for tiny movments (mugs game anyway!) How is 2 extra points killing me?

Rollovers ? Currently around 3% annually = 52 points for BOA and 200 points for FB ...

 

[ffsear]

A futures rollover? I just get closed and reopend onto the next contract. Where's the 3% come from?

 

[tar]

A futures rollover? I just get closed and reopend onto the next contract. Where's the 3% come from?

The 3% is approximately what they charge annually for rolling bets . For quarterly bets the spread should be wider than 3 cents and the interest rate charge should be reflected in the forward price anyway ( unless you short ) .

BP DFB 476.37-477.33

BP Sep14 476.32-482.07

 

[ffsear]

Ok, but i don't really see how that means we're getting ripped off by using a spread betting firms?

I don't trade quarterly's anyway . Each to their own i guess,

 

[tar]

You are not ripped off , you can trade shares with just 5-10% margin , that's a huge advantage ...

 

[ffsear]

Also, aren't interest financing charges only applicable for daily rolling bets? Not the quarterly's?

 

[tar]

Also, aren't interest financing charges only applicable for daily rolling bets? Not the quarterly's?

Correct however the interest charge will already be reflected in the quarterly quote , check my post #10 ...

 

[tar]

Correct however the interest charge will already be reflected in the quarterly quote , check my post #10 ...

Example how IG factors in interest premium in quarterly prices :

https://www.ig.com/uk/increase-in-spread-caps-on-us-and-canada-quarterly-bets?CHID=3

 

[ffsear]

Far too complicated for me. Capital spreads just roll you onto the next contract and charge you half the spread.

 

[tar]

Far too complicated for me. Capital spreads just roll you onto the next contract and charge you half the spread.

Just was pointing out to the formula that's used by all brokers - including CS - to price a quarterly market ...

Interest premium = ((One-month Libor + admin fee) x price x number of days to expiry)/360or365

 

[Visaria]

S&P 500 spreadbet quoted at 5892.24-5892.54 i.e. 0.3 points. Equivalent DEC S&P 500 on CME quoted at 5892.25-5892.5 plus 2x commission (roundtrip). For a day trade, which one is better? Imo, the spreadbet due to zero tax.

 

[Trader333]

Which Spreadbet Company is quoting that ?