Does anyone use spreadbetting for investment purposes?
I am using IGINDEX more frequently now and like the access to liquidity in products and markets available. Spreadbetting is very attractive due to the tax free gains. Instead of using leverage I keep all my cash in a high interest bank account, and put the margin requirement in IGINDEX. I then buy and sell the notional amount of stock or index which I can cover in from the cash in my bank. So its really like having an unlevered investment in terms of exposure, I also use forward contracts as I buy and hold for a period of time. Any thoughts regarding this versus investment in stocks and ETFs.
I am using IGINDEX more frequently now and like the access to liquidity in products and markets available. Spreadbetting is very attractive due to the tax free gains. Instead of using leverage I keep all my cash in a high interest bank account, and put the margin requirement in IGINDEX. I then buy and sell the notional amount of stock or index which I can cover in from the cash in my bank. So its really like having an unlevered investment in terms of exposure, I also use forward contracts as I buy and hold for a period of time. Any thoughts regarding this versus investment in stocks and ETFs.
