Rolling VS DEC bets?

[newto it]

Hello All,

I am going to focus on just FTSE 100 spreadbetting.....i am using ODL.

However I don't understand the difference between

Rolling 5238 - 5239
DEC 5270 - 5276

I want to short them, which one is more favourable? By the looks of it, the spread is tighter on rolling right....???

Hope that makes sense and someone can explain it to me.

Also convinced FTSE will be around 4800 come end of year....

 

[gc1]

Not sure about ODL but most spread betting companies charge 2% p.a. on the underlying position value for rolling the daylies (i.e. 2/365 % per day). It sounds small but can quickly add up to more than the saving in the spread if you want to hold a position for weeks.

 

[MikeYass]

If your going to short it you should definitely use the rolling cash. That way you will recieve finance income, at the short rate, which will be around 2.5% per year on average and benefit from the tighter spread. (only if your holding overnight) December quartely bets are good if you want to go long because you won't pay interest for holding the position overnight. You should probably use quarterly bets if you plan to hold any longer than say, 5 days. This is because you will be saving paying interest on a long position at around 8% which is considerably costly.

 

[newto it]

Thanks for the reply Mike...