Spread Betting For Suckers

jkane

Active member
128 1
Why??

Its impossible to overcome rip off spreads

Trade in USA Futures markets only with Brokers

I laugh at all the suckers losing their shirts at spread betting firms and already being down like 6 points on a SP 500 Spread to start a trade:LOL:

SP Mini Future 1 lot and your down $12.50 initially plus a $5 round turn commission

Spread Betting firm same type trade your down approx $25-$30 to start the trade

I know zero taxes in UK but your still way better off making that same trade in USA Futures Exchange
 

tar

Legendary member
10,443 1,313
Why??

Its impossible to overcome rip off spreads

Trade in USA Futures markets only with Brokers

I laugh at all the suckers losing their shirts at spread betting firms and already being down like 6 points on a SP 500 Spread to start a trade:LOL:

SP Mini Future 1 lot and your down $12.50 initially plus a $5 round turn commission

Spread Betting firm same type trade your down approx $25-$30 to start the trade

I know zero taxes in UK but your still way better off making that same trade in USA Futures Exchange

There are advantages and disadvantages as well , what about Dax , Dow , Ftse ... etc all are offered with 1-2 points spread max which is good , what about size flexibility , example : you don't have to trade a full Dax contract - 25 euros/point - ... etc .

Check my signature :p
 

jkane

Active member
128 1
I think the only advantages and I will throw in cfd brokers also is what you mention about lower bet sizes and of course lower margins you need to trade

as far as trying to make money though tough odds

A lot of different opinions
 

peakoil

Well-known member
257 38
I love it when our US friends occasionally stop by, to reassure us that we're alleged 'suckers' for spread-betting.

Well O.P., thank you for that, but from my experience, I don't agree with your sentiments. And what's more, may I respectfully ask (seeing as your profile is empty) what experience have you accumulated in your lifetime, with any particular spread betting company?


Why??

Its impossible to overcome rip off spreads

Trade in USA Futures markets only with Brokers

I laugh at all the suckers losing their shirts at spread betting firms and already being down like 6 points on a SP 500 Spread to start a trade:LOL:

SP Mini Future 1 lot and your down $12.50 initially plus a $5 round turn commission

Spread Betting firm same type trade your down approx $25-$30 to start the trade

I know zero taxes in UK but your still way better off making that same trade in USA Futures Exchange
 

jkane

Active member
128 1
If your going to trade use CFD's slightly better spreads

Spread Comanies cannot lose because of wide spreads, all they do is hedge

Bank Of America traded in USA has 1 cent spread at US brokers, spread betting wise you get killed

The lower margin requirements make is appealing in the UK
 

ffsear

Senior member
2,178 452
Bank Of America traded in USA has 1 cent spread at US brokers, spread betting wise you get killed
UK

Killed? Looking at my spread betting platform, i pay 3c spread on BOA. No costs, no tax. What i see is what i get.

As long as i'm not scalping for tiny movments (mugs game anyway!) How is 2 extra points killing me?
 
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tar

Legendary member
10,443 1,313
Killed? Looking at my spread betting platform, i pay 3c spread on BOA. No costs, no tax. What i see is what i get.

As long as i'm not scalping for tiny movments (mugs game anyway!) How is 2 extra points killing me?

Rollovers ? Currently around 3% annually = 52 points for BOA and 200 points for FB ...
 

ffsear

Senior member
2,178 452
A futures rollover? I just get closed and reopend onto the next contract. Where's the 3% come from?
 
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tar

Legendary member
10,443 1,313
A futures rollover? I just get closed and reopend onto the next contract. Where's the 3% come from?

The 3% is approximately what they charge annually for rolling bets . For quarterly bets the spread should be wider than 3 cents and the interest rate charge should be reflected in the forward price anyway ( unless you short ) .

BP DFB 476.37-477.33

BP Sep14 476.32-482.07
 
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ffsear

Senior member
2,178 452
Ok, but i don't really see how that means we're getting ripped off by using a spread betting firms?

I don't trade quarterly's anyway . Each to their own i guess,
 
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tar

Legendary member
10,443 1,313
You are not ripped off , you can trade shares with just 5-10% margin , that's a huge advantage ...
 

ffsear

Senior member
2,178 452
Also, aren't interest financing charges only applicable for daily rolling bets? Not the quarterly's?
 

tar

Legendary member
10,443 1,313
Also, aren't interest financing charges only applicable for daily rolling bets? Not the quarterly's?

Correct however the interest charge will already be reflected in the quarterly quote , check my post #10 ...
 
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