Small stakes and long-term bets -- better value to do DRBs or Futures?

[_gnasher_]

Currently trading with IG Index. I am using spread betting as a way to make longer-term investments (12 months or so) with the leverage and the tax advantages.

Part of the reason I use IG is that they have the option to buy Mar-12 expiry trades, as opposed to CMC (who I would rather use for their platform and spreads) who can only do daily rolling bets.

If I am only ever betting £1/£2 PP, is it a lot cheaper (in terms of financing charges) to buy these Mar-12 expiries (and then rolling over for another 6 months on their expiry), as opposed to just having a daily bet that rolls over for 12 months?

Forgive my ignorance, I feel I understand the markets well, but am very new to Spread Betting!

 

[Hotch]

It really depends on how long you hold on average. I am guessing from your post that yes, it is better to use the long dated contracts, you're really just going to have to do the maths yourself. If all trades are held til mar/sep-12 then yes, I'm pretty sure long dated would be better.

Also depends a bit on how much of a move you get iirc, not really an expert I'm afraid.

 

[_gnasher_]

Thanks, Hotch.

So it looks like I will have to stay with IG then to pay as a little as possible for a longer-term bet.

Unless anyone has a reason why DRB could be cheaper?