Spread betting vs Trading

[mike.]

Ok guys, big ask here, if anyone has the time or can be ars*d, could somebody explain in reasonably simple terms how to back test on the timetotrade.eu basic charts.

These are the charts that capital spreads,tradefair and possibly a few others use.

I'm wanting to test 2 ema's and place say a £2 bet then backtest it.

there are a few tutorials on youtube but these are done with there "interactive enterprise charts" which slightly differ from the basic chart. Many thanks in advance.

 

[ffsear]

If you have a strategy thats profitable for you, good risk management and are able to disassociate yourself emotionally from the money, then it don't matter if your spreadbetting, DMA, CFDs, or any other medium.

As long as you can Buy, sell and place orders on or near enough to the true market price, then it shouldn't make a difference.

The process you use to trade will not be the difference between winning and losing! YOU are the difference

 

[alphadude]

the odds are different.

 

[ffsear]

The odds of the market moving in my favor are different? How?

 

[flbroker]

The same way Fedor Emelianenko has odds in his favor against you. Both of you can swing, but he can take you out with a punch and you wouldn't hurt him at all.

 

[ffsear]

Thats an odious comparison!

 

[flbroker]

It's not. People win in the same environment because they have an edge. If you don't have an edge you wouldn't understand people who do.

 

[ffsear]

It is because your comparing the SB broker to a 1 on 1 fight. But when a broker takes my position, we can both win! My edge is my analysis and risk management against the market. I don't need an edge over my broker i'm not playing them directly. If they take my position, they are playing the market too.

Spreadbetting brokers don't "play" each individual customer. Every trade just feeds into their position monitor and the play the market with that position, or hedge it out if they don't want it.

 

[alphadude]

The odds of the market moving in my favor are different? How?

if the house rules are different; then the odds are different.

the question to ask then is; are the spreadbetter firm rules different than that of the market?

an example of a rule difference is the manipulation of quotes by spreadbetting companies.

 

[MrBurns1]

How does that even make sense? Spread betting is gambling and you're playing against the house, in their environment. Have you ever been in a casino before? The house doesn't copy your roulette system if you make money, they throw you out.

Crap.

Spreadbetting is not gambling as such. It may be portrayed as gambling by the UK Government. Spreadbetters who dont know how to analyise the markets are Gamblers. People who analyise the market, and make decisions based on fundamental and technical reasons are traders imo.

 

[gle101]

Crap.

Spreadbetting is not gambling as such. It may be portrayed as gambling by the UK Government. Spreadbetters who dont know how to analyise the markets are Gamblers. People who analyise the market, and make decisions based on fundamental and technical reasons are traders imo.

In a way I think he got a point, on the other hand trading the real market is also a form of gambling, whatever other fancy word you like to call it. Why because, you pay a price to get into the market, and therefor the odds are against you at the very start. There is also so called manipulation in the real market, high frequency trading do manipulate the real market by entering huge no. of order in milliseconds, and withdrawing most of them just as fast.

 

[SimonK]

In a way I think he got a point, on the other hand trading the real market is also a form of gambling, whatever other fancy word you like to call it. Why because, you pay a price to get into the market, and therefor the odds are against you at the very start. There is also so called manipulation in the real market, high frequency trading do manipulate the real market by entering huge no. of order in milliseconds, and withdrawing most of them just as fast.

The government have themselves referred to the activity of banks as "casino banking", so in their eyes, any form of trading is gambling... which also has interesting tax implications.

That is not to say, you cannot make money from gambling if you have an edge.