the blades
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rafy07 said:
Hello,
The "S+P" is the S&P500 index of US shares. With a spreadbetting firm you can buy or sell, at a certain £/point movement in price of whatever you're dealing in.
So for example if you purchased this at £5 per point, you would gain £5 for every point the index moves up and lose this for every point the index moves down. The structure is fairly simple, what's more difficult is predicting which way it will go, overcoming the spread, and overcoming your emotions (eg sticking to any plan when things are going against you).
Read up all the info on these boards before you even think of committing any money.
Good luck,
UTB
Jack o'Clubs
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Good advice as usual from The Blades.the blades said:
The other way of looking at it, is that £5/point would be equivalent to investing £7161 in the S&P (ie £5 x 1432.2). So if you wanted to invest £10,000 on Vodafone quoted at 125p you'd put on £80/point. (ie 10,000/125). As Blades says, until you're on top of all of this, you'd be unwise to risk real money. Have a look at Finspreads, they do an 8-week 'training' academy where you can bet for 1p/point.
Hey thanks for the advice guys, i bought 1 S+P last week on my demo account and its risen to about 700 pounds so i've decided to close the deal and start again this week and work myself up like that, a couple of things i'd like to ask, all last week when i had bought the S+P it was debiting a couple of pounds and sometimes 8 pounds from my demo account, any reason for that? and also what does this mean; Min IMR 50 CGSL 200?
thanks again.
thanks again.
the blades
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rafy07 said:
As JOC pointed out, by buying the S&P at "£5" pper point yopu are effectively buying around £7.2K of stock. To do this, you only have to put up a small % (IMR = Initail margin requirement, call CS to explain exactly), so effectively you're using money you don't really tie up. So you are charged interest at a rate of LIBOR (5.5% ish?) + 1.5% (check with CS again) when buying rolling products. You'll be charged each night and extra at weekends (£8?)
Although this is fairly obvious, don't get sucked in to the fact that you made £700 last week. Was this luck? What makes you think the market will rise again? Remember that the index reflects the equilibrium between all buyers and sellers. What do you know that others (generally more experienced, no?) don't?
Cheers,
UTB
the blades said:
Thanks for the info dude, making the 700 pounds probably was just luck, but i mean i need to come up with a strategy for when the it starts going down hill, i suppose the only strategy when going down hill is to stop and take your loss, i recently purchased a program on eBay which apparently predicts tomorrow's S+P market, its called Market Heartbeat +, im currently using that on my demo account but im not sure if it works yet.
rafy07 said:
With the s&p i think your margin would be £50 on £1 per 0.1 s&p points,well it was when i used to trade it.. The s&p can be quite choppy so be careful when your starting out or you could get wiped out very quickly..
Now then purchasing a programme. Would you sell a profitable system? Everbody trades different so you have to find your own style and work hard on that.
Capital spreads are ok imo. They charge around 0.4 pips spread which is quite reasonable and you can make money. They are quite fair as spread betters go. I've used other companys 1 charges 1 s&p point spread which is ok i suppose if your holding for longer periods. No good for a day trade imo.
Watch out for fed news announcements as some SB platforms go manual fill and you don't know if your in or out.
Watch out for fed news announcements as some SB platforms go manual fill and you don't know if your in or out.
dans_ya_man
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Hi rafy07,
How have you found the heartbeat software? see it on E-BAY myself and was thinking about getting it.
I`m also a rookie spread trader.
Has anyone out there got any good advice on which software will be best suited to spread betting?
How have you found the heartbeat software? see it on E-BAY myself and was thinking about getting it.
I`m also a rookie spread trader.
Has anyone out there got any good advice on which software will be best suited to spread betting?
mickandpete
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rafy
As you seem to be domiciled in the UK it may be easier for you to start with the FTSE (UK shares) with which you may be more familiar
As you seem to be domiciled in the UK it may be easier for you to start with the FTSE (UK shares) with which you may be more familiar
Hi. I'm a rookie trader too, have money generally in mutual funds but fancied having a go myself. Set up an account with finspreads to do the 1p/point deal for 8 weeks (which means I can lose without burning a hole in my pocket). My question is about rolling bets. I bought FTSE 100 and Gold, both rolling, both at 1p/point. So on the FTSE i made 32p (hooray) but on Gold I lost 11p (boo). Anyway at the end of Thursday, the bet rolled over and I was charged £1 for the Gold rollover and £1.25 for the FTSE rollover. Why? I've been trying to work out the numbers and calculations behind this charge but can't see how for a 1p per point bet they can charge me 100+ times my stake for the rollover? Or am I missing something here? I'm aware it's Easter Weekend but surely that wouldn't levy such a disproportionate fee?
All answers and responses would be much appreciated.
Thanks
All answers and responses would be much appreciated.
Thanks
