Spread Betting Basics

[wmg100]

I've been trading forex for about a month now and am showing a good profit by using basic support/resistance lines, mainly breakout trading. Have been using finspreads but am still a bit unclear about how the whole spreadbetting thing is set up. Any help with these qusetions wouold be gratefully recieved:

1) Are you betting against the company or against other traders, i.e does there need to someone else out there to oppose your position (like betfair) or are they more like bookmakers?

2) Are there any firms that allow very large amounts per pip, say £50,000 or more?

3) Do suucessful accounts get closed down as with bookmakers?

Thanks.

 

[Lightning McQueen]

I've been trading forex for about a month now and am showing a good profit by using basic support/resistance lines, mainly breakout trading. Have been using finspreads but am still a bit unclear about how the whole spreadbetting thing is set up. Any help with these qusetions wouold be gratefully recieved:

1) Are you betting against the company or against other traders, i.e does there need to someone else out there to oppose your position (like betfair) or are they more like bookmakers?

2) Are there any firms that allow very large amounts per pip, say £50,000 or more?

3) Do suucessful accounts get closed down as with bookmakers?

Thanks.

hi wmg100

1 they are bookmakers and as such will try and balance their books

2 IG say in their dealing handbook "The maximum bet size permitted on any one quotation will vary with market conditions." I think its probably a lot less than £50,000 like knock 2 zeros off that figure

3 yes I believe they do or make dealing with them very difficult although having said that Capital spreads state that they have never done so. they have a thread on this site

http://www.trade2win.com/boards/showthread.php?t=16595&highlight=capital+spreads

its long thread but worth a read ask a question and get it straight from the main man who runs the show

 

[hungvir]

1) Are you betting against the company or against other traders, i.e does there need to someone else out there to oppose your position (like betfair) or are they more like bookmakers?

I was told that they'll hedge your positions if it's more than 10 pounds a point. Anything less than that is ''not hedgeable''. I guess it's like if you go to Tesco, they only sell eggs in boxes of 6/10/12/18...

Good trading,

Hung