Can I be sure SB company will pay up if market crashes?

[stevespray]

PS - I just checked Finspreads. You can use the g/teed order (to open a bet) on their rolling cash Dow and FTSE so once you have paid your money you can keep altering the order level for ever. Seems like a massive loophole to me.

Steve.

 

[Profitaker]

effectively (and legally), these bookies are running an otc book .

I think that is the crux here Grant, they aren't market makers.

Shadowninja

I would suggest that's probably a little extreme. But you can read their T & C's as can anybody.

 

[suchong]

Thanks for the replies. I’d roll over quarterly contracts, and trackers do reinvest dividends (It’s guaranteed equity bonds that don’t), so total annual charges could be under 0.5% per year.

Bear in mind that the greater risk you remove from your portfolio, then theoretically the return will more closely approximate the risk-free rate of return.

The risk-free rate of return is all I’m after for now though. I just want to pay the rate of tax applicable shares rather than the 40% that applies to cash.
But seems that the risks that something could go wrong with the spread bet are too high. I’ll look into the finspreads offer, though one wonders whether their offering of this ‘guaranteed’ product would place them at even greater risk than some of the other spread firms in the event of a crash.

 

[shadowninja]

Shadowninja

I would suggest that's probably a little extreme. But you can read their T & C's as can anybody.

Sure, but I'm not a lawyer so the T&Cs can be open to interpretation by someone who has a clue (ie not me).

And it would be amusing to be known as ShadowPlunger. (I'm assuming everyone's read Reminiscences!)

 

[lucas_king]

I guess if the spread betting firm doesn’t have appropriate risk measures in place that is a risk you take. Eg Worldspreads. Stick to the bigger guys and you minimise your risk.