Spread betting Margins

[Tomski]

Hi,

I was wondering how spread betting companies margin and if they all use the same methods. Are they like futures in that, if I put a euribor spread on the margin is a lot less that an outright, or are all positions margin seperately.

If companies different could someone point me in the direction of one that reduces for spreads.

Thanks

T

 

[arabianights]

I think you'd have to come to an arrangement with them over the phone. I would also suggest that the transaction costs in building a Euribor calendar spread out of spreadbet outright quotes is massive, see if they can quote you on the spread itself.

 

[Tomski]

Yeah that wasn't the best example in strategy, I was really thinking about more volatile products, I just felt it was good for what I was asking, in that clearly the spread should have a smaller margin than the outright.

So companys don't actually have this openly available? I would have thought it would attract more customers as a lot of people like to trade that way.

T