MORRIS2001
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Very simply, CFDs and Spread Bets are the same product. They are a leveraged OTC based on an underlying market. Derived in the same way but packaged for consumtion differently.
Which one came first depends on whether you believe the story of CFDs being created in the mid 80s by a group of bankers who also had IG Index accounts
In crude mechanical terms to classify a CFD as tax free (ie a spread bet) you must not have external charges such as interest or comm, so these are wrapped into the bid/offer and rollover. In recent years this has been twisted a little bit but the taxman has not baulked as he still recieves his take on the trades.
A Binary is wholly different. A binary is a house run betting system where odds are made on an event occuring at a fixed time and quoted as a price between 0 and 100. You either win or lose but can close out intra play.
Which one came first depends on whether you believe the story of CFDs being created in the mid 80s by a group of bankers who also had IG Index accounts
In crude mechanical terms to classify a CFD as tax free (ie a spread bet) you must not have external charges such as interest or comm, so these are wrapped into the bid/offer and rollover. In recent years this has been twisted a little bit but the taxman has not baulked as he still recieves his take on the trades.
A Binary is wholly different. A binary is a house run betting system where odds are made on an event occuring at a fixed time and quoted as a price between 0 and 100. You either win or lose but can close out intra play.
Very simply, CFDs and Spread Bets are the same product. They are a leveraged OTC based on an underlying market. Derived in the same way but packaged for consumtion differently.
Which one came first depends on whether you believe the story of CFDs being created in the mid 80s by a group of bankers who also had IG Index accounts
In crude mechanical terms to classify a CFD as tax free (ie a spread bet) you must not have external charges such as interest or comm, so these are wrapped into the bid/offer and rollover. In recent years this has been twisted a little bit but the taxman has not baulked as he still recieves his take on the trades.
A Binary is wholly different. A binary is a house run betting system where odds are made on an event occuring at a fixed time and quoted as a price between 0 and 100. You either win or lose but can close out intra play.
Hello.
Why are the returns on binaries so low? From what I have noticed so far you stand to win around 80% of your stake. In a similar spot in sports betting top books would pay you nearly 95% and if you shop around for best prices across multiple books you wouldn't really need to pay any juice. Is it so difficult for binary options brokers to hedge their exposure? Do they perhaps pay too much commission buying these products from banks/bigger brokers?
Do competent traders really make profits on these?
Thanks.
"Do competent traders really make profits on these? " ......
- Yes they do as long you are trading with a broker that uses electronic execution.
