Can you really make money spread betting

lucas_king

Member
96 3
Hi Lucas,
I don't know where you've got your information from - but I'm afraid you're labouring under a misapprehension - and quite a big one!

Spread betting and CFDs are identical in so far as both of them are merely a vehicle by which a trader has access to the market. To use an analogy, think of a baker. To bake bread, a tin is required to put the dough in. Tins can be square, round or rectangular etc. and equate to spread betting, CFDs and options etc. The tin is the vehicle in which bread is baked, spread betting and CFDs are the vehicle by which people trade the markets. The dough can have all kinds of different ingredients to produce a huge variety of different bread types. The dough equates to different markets, e.g. equities (Google, Facebook, Vodafone), commodities (oil, gold, coffee) and indices (Dow, FTSE 100 and Dax) etc., etc.

So, based on the above, hopefully you can see that you can trade a wide range of different markets - and individual instruments within those markets - via either spread betting or CFDs. To understand more about the similarities and differences of these trading vehicles, check out this FAQ: What are the Pros and Cons of Spread Betting Vs CFDs?
Tim.


Thanks Tim,
My mistake, you're right. What I meant was I like the fact that CFDs give me the DMA for shares whereas indices most suited to spread betting.
 

EdGasket

Newbie
1 0
The bulk of replies on here refer to using graphs amd moving averages to pick entry points. Has anyone traded successfully based on whether a share is under or over-valued on fundamentals i.e. things like PE, tangible assets, director buys or is the time frame too long for these things to come into play?
 

timsk

Legendary member
7,604 2,377
The bulk of replies on here refer to using graphs amd moving averages to pick entry points. Has anyone traded successfully based on whether a share is under or over-valued on fundamentals i.e. things like PE, tangible assets, director buys or is the time frame too long for these things to come into play?
Hi Ed,
Welcome to T2W - cool username btw!
(y)

My reply to your question is a generalisation but, as generalisations go, I think it's a good'n. One of the key differences between an investor and a trader is timescale. The former think in terms of many months through to many years. The latter think in terms of many seconds through to many hours. Fundamentals like PE will have very little impact - if any at all - on the very short term horizon of the trader. The main reason for this is that by their very nature, most fundamentals are severely lagging. For that reason, few traders look to fundamentals such as PE to trade from. Just to be clear, major economic data constitutes fundamental data - and traders do trade from that because the market moves (sometimes) the instant it's released.
Tim.
 

potshot

Active member
117 2
Open a CFD account and a SB account watch the prices and how the markets move on both accounts and you will see how much the SB's manipulate their price compared to the real market price.
 
 
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