Selftrade -RBS covered warrants

[deaglecat]

Any views on this service now offered by Selftrade. I have an a/c with them and find the limit of the loss (to only the cost of the Warrant) attractive - though I understand that the majority of trades - effectively put or call options do actually expire worthless.

 

[bluetipex]

ahhhhhh.... Covered Warrants......

When I first started in this game, I had loads of money, and zero knowledge, and basically gambled away £50,000 with Covered Warrants. I had an account with TD Waterhouse and Selftrade.

I'm sure if you know what you're doing you can make money with Covered Warrants. Both TD Waterhouse and Selftrade are good companies as far as I can remember.

 

[deaglecat]

ahhhhhh.... Covered Warrants......

When I first started in this game, I had loads of money, and zero knowledge, and basically gambled away £50,000 with Covered Warrants. I had an account with TD Waterhouse and Selftrade.

I'm sure if you know what you're doing you can make money with Covered Warrants. Both TD Waterhouse and Selftrade are good companies as far as I can remember.

Thanks for sharing.... the major pitfall on spreadbetting (in these volatile times) seems to be getting stopped out as the prices swing so fast coupled with problems getting the trades filled quickly before the price moves. Covered warrants seem better in this regard.

I am interested your experience of the pitfalls in general terms (apart from the obvious - backing the wrong market / price direction ) if you are willing to help. Is it the cost of the warrant, the spread ...or what ?

Thanks


Deag

 

[bluetipex]

I'm afraid I can't help you with Covered Warrants now, I've forgotten most of what I learned. I spreadbet now for a living.

If you've set your heart on Covered Warrants, then it should be fairly easy to learn all you need to know from the web/books.

The current market volatility is lovely for me, but I suppose it depends on your strategy.

Thanks for sharing.... the major pitfall on spreadbetting (in these volatile times) seems to be getting stopped out as the prices swing so fast coupled with problems getting the trades filled quickly before the price moves. Covered warrants seem better in this regard.

I am interested your experience of the pitfalls in general terms (apart from the obvious - backing the wrong market / price direction ) if you are willing to help. Is it the cost of the warrant, the spread ...or what ?

Thanks


Deag

 

[Cockeyed Optimist]

Selftrade covered warrants

Any views on this service now offered by Selftrade. I have an a/c with them and find the limit of the loss (to only the cost of the Warrant) attractive - though I understand that the majority of trades - effectively put or call options do actually expire worthless.

Deaglecat
I have used their covered warrants with mixed success for several years. My losses have been due to not using stop losses and having warrants on American indices which were affected by events over there while ST was shut overnight. The latter is the big catch unless you avoid overnight positions. I tend to play longer term and am currently doing quite well shorting industrial metals.
Cockeyed Optimist.

 

[anley]

If you're interested in trading options or warrants make sure you REALLY understand the cost of doing business and that lies mainly in the bid-offer spread.

Often it's 5% or maybe 10% which means for 99% of people, especially short term traders it will be impossible to make money. Sort of like in a Casino, ever tried to make a living at roulette when the house edge on red/black are about 2.5%? It cannot be done.

 

[HRHRRH]

As anley says a large cost is the spread - has anyone had experience in RBS Covered Warrants? Their spreads seem tighter (see Markets from RBS - UK) than SG. Any idea as to why?

With a Covered Warrnt the best thing is you don't get stopped out and your losses are limited unlike CFDs. I wouldn't recommend holding Warrants until they expire though!

 

[DONEGAL 2007]

As anley says a large cost is the spread - has anyone had experience in RBS Covered Warrants? Their spreads seem tighter (see Markets from RBS - UK) than SG. Any idea as to why?

With a Covered Warrnt the best thing is you don't get stopped out and your losses are limited unlike CFDs. I wouldn't recommend holding Warrants until they expire though!

Yes I agree that the spread is the big disadvantage and having used SG on and off for a few years I was delighted to see RBS on the scene with much tighter spreads. I have been using RBS warrants with Selftrade now for a few months in a small way and find them fine, as in all the mistakes are mine and not theirs! Strange though it may seem, I have held a few warrants to expiry.The last was a FTSE call in the early autumn of 2006. I reasoned that the market was trending nicely and why should I pull out a week or so early and miss a bit of potential profit ( the warrant was well in the money as well) Maybe it was daft , I dont know! Anyway the warrant expired and I got my money in the account within days.I wouldnt think it a good idea in these markets mind you Good luck all with the warrants , Harry.