You are over complicating things. If you are trading size via SB, you should be swinging over a 3 to 5 day period, that way timing is less important, and because of this you can split your trades. So if you wanted to do say £300 you can split it into 3 x 100 trades at a spread of 1.6, and off load when you see fit.
As your size increases you have to adapt your style. For example when I scalp I can get in for £50 a point sometimes, but on average £20 seems to be the uncle point (for whatever reason), so it makes no sense to carry on this way when I can swing for £200 a point without having to worry about slipping a point (which you do when scalping).
Once you gain pro status, margin is less of a b*llache. But margin is dangerous if you don't respect risk. BTW having pro status doesn't alter your tax implications, as this is relevant to the instrument/vehicle you are using to trade.
Hi, thanks. Yep my dax trades are usuly done by 10am bst and have smaller targets whereas Dow can last more than 1 but are more momentum style so its all about entry and execution. Once my entry price has gone its gone and I will not chase. I suppose dividing the amount over 2 to 3 different sb brokers is the way to go if I can execute the same trade all at the entry price.?? Might need some help with other people's fingers. Thanks
Have you considered once trading on this scale that you would fall outside of the tax free status of a retail trader and be liable for income tax. Many have said this is not the case on t2w but many other traders I respect have limited companies and do not spread bet.
If it went to court you would likely get off pay no tax on your profits but future profits would be taxed as they would class you as a professional going forward. The big hitting traders don't SB as they know this so it has never ended up in court. Futures do a significant volume of trading and are the product of choice for the scale of trading. Also you don't have counterparty risk with futures.
Professionally spread betting as sole retail trader in the UK incurs no tax liability.
No if's. No buts. No maybes.
And no chance of being taken to court.
Big traders using limited companies to trade do so because they want to do things that would leave them liable to tax and thus using a company wrapper considerably reduces potential tax liabilities that would otherwise ensue.
The tax situation is hypothetical and depends if you lean on the side of caution (take advice and progress from Spread betting) or are willing to take the risk of defending yourself in court which you could win or lose.