Best way to Short a stock ?

[Gardan]

Hi, I am researching and trying to learn the best way or alternatives on how to actually go short(sell) a stock. There seem to be a lot of threads relating to "Spread Betting" but I could not find a lot relating to CFD's. Sorry if there are lot's but I can not find them,still finding my way around.

I would be really interested to hear what traders are using and why it works for them and what are the pitfalls that a newbie my fall into.
I have found that where spread betting has no capital gains tax or other related costs that eat into profits the charge is really within the spread and the price of the Spread Betting Company may not be what the market price is. Is this true and as a guide how much on average does it vary from the actual market price or from company to company.
Is it best to start with Spread Betting then as you get more experienced move up to CFD's or the other way around?
What are you using and why?

Many Thanks

 

[Trader333]

It depends upon your time frame of trading. If you trade intra-day then using a direct access broker is the only real option in my view and I use www.interactivebrokers.co.uk for this purpose.


Paul

 

[Gardan]

Thanks Paul, I will visit their site.

 

[LION63]

If you wish to short UK (FTSE 100) shares you may find that you are better off using Options as they give you a longer time horizon and your potential losses are quantified from the outset. Also, if the price moves against you for a short period of time you are not closed out.