Recent content by Synonym

Thanks JKane. I can't agree more. I've spread bet for a long time and the tactics i used to have to put in place to manage the ridiculous spreads where crazy. I shudder to think what they would be like on options. I've opened an options account in the US. A much better way to go. Cheers Syn

Bang on. So true and so sad.

We think very alike Tom. I agree entirely. It's like how the Ave Joe is stopped from investing/trading in many different private / venture cap enterprises and other investments/instruments, as they are deemed far too risky for us mere mortals...but online gambling and the lottery - well just go...

Agree Tom re regs. As you say, rarely loosened. I disagree re margin. Rather than a across the board change in margin, why not look at those who have been trading profitably or have not blown up/ even had a margin call. If they've been doing that over an extended period of time, why suddenly...

We can only hope. But i think it'd take a change in the current cabinet to do that. There's as little common sense ( or desire to see the world from the perspective of the people not the govt.) in our current cabinet as there is in the EU.

Haha! Yes I feel similar about the name too. Ah right, so the leverage is still not what it used to be. Can't decide which route i prefer that or buying options (not betting on them). It must be some of the markets i've traded in the past, you'd go from closing the night before with a £350...

Where did you you find the margin req Tom? I can't find that. No, you cant adjust the SL once set, but i find given the way the spreads blast wide open during the before hours or at the open you can't afford to have and SL sat in the market. Have you not found the same? Perhaps it's just the...

As suspected, these ETX markets do work in that way. IG as of yday introduced their own markets. Called Knockouts. They trade just like options and so you can use in a way to make the max loss and margin req lower than those generally of the of ETX DELTA. Look pretty good. I may start using...

Hopefully so. As i mentioned above, awaiting a response from ETX, but IG take the margin of the full underlying when you spreadbet on buying an options, this is because they don't actually take a position in the options market, but make a synthetic one in the futures markets.

I understand and certainly agree with the simple is best approach. Betting on options doesn't look good. But to me neither is betting under the new ESMA rules. With the margin req, the spreads and the way the spreads can widen greatly after hours/at open (meaning i'd never leave a physical stop...

Plus, they despite buying of options being a cash transaction, they take the premium and but also wnat the margin from the underlying market. So betting on options is much less reflective of actually trading the underlying than spreadbetting a future/stock is.

The spread on these can be very expensive. On IG now, a Sept Call on the SPX, Bid = 29.77 Ask = 31.97. Min size = £10 per point, a point being the difference between 29.77 - 29.78.

Agreed. Also IG even goes so far to say on their own forum that trading betting on an option with them is to trade a CFG.

Liquidity in options trading is a serious risk, just looking on IG, who also offer SBing on options. The spreads are wide and there is no indication of liquidity whatsoever. I bet you could easily get killed trading options in this manner.

Basically it's spreadbetting on options. I don't think they used to offer that, i may be wrong? IG offer this too. I'm sure they didn't offer it in the past..?