spread betting interest

[PeterPG]

Hi there,

Just found this forum, glad I did! I have been looking into spread betting for a while but there is one thing I can't see it work out. If you take out say a long 3 month Spread Bet on the FTSE, would you incur daily interest charges on this or not?

thanks

 

[Jack o'Clubs]

Not if it was a quarterly bet - effectively the interest charge is built into the premium over the cash price. On the other hand if you take out, say, a CMC daily-rolling bet then there'll be an interest charge each day. The T&Cs of whoever your spreadbet broker is will go through the details: always worth reading the small print anyway.

 

[PeterPG]

Thanks Jack