Why have Spread Betting and CFDs become the backbone of the UK's Financial System?

[safvan]

I read somewhere that they make up a large stake of UKs daily trading volumes. Its a completely synthetic market created by a pack of brokers backed up by nothing but then you can say options are sort of like (until you exercise them) too.

Isn't it quite like the buvket shops mentioned all the time by Jesse Livermore? Its ironic that the same bucket shops with their fancy tune ups have become a virtual backbone of the money movement in the UK's financial system.

Any thoughts? Why do you think US has banned CFD or other products?

Thank you.

 

[JRP2891]

SB and CFD's the backbone of the UK financial system - don't think so!

 

[BeginnerJoe]

As far as I am concerned SB firms are in fact bukket shops. The advantages of them are that winnings are tax free and also it's an easy way for a retail investor to go short. Coupled with the leverage, people probably think their money go further with SB than buying stocks.

As for CFD being banned in the US, I can guess they do it to protect people from accessing too much leveraged risk, or maybe they are still wrangling over who should be given the license to print money, or maybe the stock exchanges don't want anyone to take their business.

 

[Martinghoul]

I read somewhere that they make up a large stake of UKs daily trading volumes. Its a completely synthetic market created by a pack of brokers backed up by nothing but then you can say options are sort of like (until you exercise them) too.

Isn't it quite like the buvket shops mentioned all the time by Jesse Livermore? Its ironic that the same bucket shops with their fancy tune ups have become a virtual backbone of the money movement in the UK's financial system.

Any thoughts? Why do you think US has banned CFD or other products?

Thank you.

Erm, this is a very strange thing to say...

 

[safvan]

Erm, this is a very strange thing to say...

Strange but intriguing...

 

[Martinghoul]

Strange but intriguing...

Not really... It's strange, but wrong nonetheless.

 

[gamma]

I read somewhere that they make up a large stake of UKs daily trading volumes. Its a completely synthetic market created by a pack of brokers backed up by nothing but then you can say options are sort of like (until you exercise them) too.

Isn't it quite like the buvket shops mentioned all the time by Jesse Livermore? Its ironic that the same bucket shops with their fancy tune ups have become a virtual backbone of the money movement in the UK's financial system.

Any thoughts? Why do you think US has banned CFD or other products?

Thank you.

I read somewhere
Could you be a bit more specific on this somewhere?

Sort of thing one would expect to read in the "Daily mail" or the "Sun"

 

[kimo'sabby]

I read somewhere
Could you be a bit more specific on this somewhere?

Sort of thing one would expect to read in the "Daily mail" or the "Sun"

All newspapers try to influence. Gamma, which paper influences you?

 

[gamma]

All newspapers try to influence. Gamma, which paper influences you?

Well Kimo'sabby there is trying to influence your point of view , then there is absolute rubbish which is what the above mentioned are!

I have not read any of the above since my teenage days, when the only interesting thing was Page 3, my sole reason for I must admit, even on occasion paying for it.

I also agree publications do try to influence you.
I have progressed to the reading the economist but do not agree with everything they write.

 

[kimo'sabby]

Well Kimo'sabby there is trying to influence your point of view , then there is absolute rubbish which is what the above mentioned are!

I have not read any of the above since my teenage days, when the only interesting thing was Page 3, my sole reason for I must admit, even on occasion paying for it.

I also agree publications do try to influence you.
I have progressed to the reading the economist but do not agree with everything they write.

Listen mate,

If i didn't have a soft spot for Westies, i'd rip into you.

 

[gamma]

Listen mate,

If i didn't have a soft spot for Westies, i'd rip into you.

Man after my own heart