Hi,
I typically hold medium to long term (6 months - years) stock positions, along with a very occasional short stock position, also occasional option positions (either to speculate, or hedge) and, very infrequently, warrants.
I've never had any dealings with speadbetting, but I would like to gain an understanding of the costs, including likely spreads and the financing costs.
I'm potentially attracted to spreadbetting for the tax benefits (I am a UK citizen) and also for having guaranteed stops, but I want to understand broadly if these are meaningful when holding medium term positions (or whether, for example, the financing costs could quickly outstrip the tax benefits).
With regards to spreadbetting, I've had a look at the IG Index website but I didn't find a breakdown of costs. I've considered opening an account just to see what the costs are in reality.
I wondered if anybody could please give me a rough indication of what the typical costs might look like.
For example, if I went long on Citigroup (currently $41) with a position that equated to $250 per $1 of stock movement, with a guaranteed stop of, say, $39, and held that for 6 months and closed it with the stock at $45, what kind of costs would I be looking at?
This is probably a good example of the kind of position I would be interested in opening, because I am currently considering opening a long stock position of between $5,000 and $10,000 on Citigroup.
I'm going to be looking at this much deeper, but it would be really helpful if somebody could please give me a broad brush estimate, so that I can decide if spreadbetting would be at all useful to me (I'm assuming at the moment that it typically is only used for pretty short term positions).
Many Thanks.
I typically hold medium to long term (6 months - years) stock positions, along with a very occasional short stock position, also occasional option positions (either to speculate, or hedge) and, very infrequently, warrants.
I've never had any dealings with speadbetting, but I would like to gain an understanding of the costs, including likely spreads and the financing costs.
I'm potentially attracted to spreadbetting for the tax benefits (I am a UK citizen) and also for having guaranteed stops, but I want to understand broadly if these are meaningful when holding medium term positions (or whether, for example, the financing costs could quickly outstrip the tax benefits).
With regards to spreadbetting, I've had a look at the IG Index website but I didn't find a breakdown of costs. I've considered opening an account just to see what the costs are in reality.
I wondered if anybody could please give me a rough indication of what the typical costs might look like.
For example, if I went long on Citigroup (currently $41) with a position that equated to $250 per $1 of stock movement, with a guaranteed stop of, say, $39, and held that for 6 months and closed it with the stock at $45, what kind of costs would I be looking at?
This is probably a good example of the kind of position I would be interested in opening, because I am currently considering opening a long stock position of between $5,000 and $10,000 on Citigroup.
I'm going to be looking at this much deeper, but it would be really helpful if somebody could please give me a broad brush estimate, so that I can decide if spreadbetting would be at all useful to me (I'm assuming at the moment that it typically is only used for pretty short term positions).
Many Thanks.
