Why Spread Bet?

frog

Junior member
49 2
sefty said:
The best thing about spread betting is you can bet on Indices. In my opinion it is far easier to see if the tide is going up or down rathering than looking at lots of different boats to put your money into.

As old Doc used to say you gotto understand where the market is at before you start stock picking. there is no better way than learning that than to bet on indices.

Good luck happy betting

Sefty

I agree it's simple and that's how I like it.I take a position once a day,stick to one vehicle on which I concentrate all my attention and it works for me-mostly and that's all I ask.I don't have the income or wealth to do otherwise so SBing suits my purpose and if I can increase my meagre salary by 20 or 30% by month that's fine by me.As I write Fins have done me proud with
a buy of 10014 and I think it's time I took some of that.
Well my days nearly done feeling mellow and pleased.
Cheers and I reciprocate your good wishes.
Bonne nuit
Tel

Simple comme bonjour
 

frog

Junior member
49 2
Well what do you reckon peeps?
Close at 10040
Some support around 9990
Spread nicely below yesterdays close.
Fins was 10017-10027 for Oct.
Cheers
Tel

Simple comme bonjour
 

Calvin

Junior member
30 0
So what is your reading of it today, Frog?

I'm still stuck in open sells on Dow and Dax (Sept). As I type, I'm tantalisingly close to heading back into profitable territory on the Dax (I sold at 3700), but a I'm still 100 points adrift on the Dow.

Looking at the Dow chart, I can't see much hope of a 100 point drop any time soon, so sooner or later I guess I'm going to have to take the loss...

This lark isn't as easy as it looks... :confused:
 

frog

Junior member
49 2
Calvin said:
So what is your reading of it today, Frog?

I'm still stuck in open sells on Dow and Dax (Sept). As I type, I'm tantalisingly close to heading back into profitable territory on the Dax (I sold at 3700), but a I'm still 100 points adrift on the Dow.

Looking at the Dow chart, I can't see much hope of a 100 point drop any time soon, so sooner or later I guess I'm going to have to take the loss...

This lark isn't as easy as it looks... :confused:

Hi Calvin,
Well it's Friday never the best day of the week.Generally too wishywashy and often I don,t trade
particularly if previously the week has been good to me.
But I,m feeling brave today or is that reckless???I would anticipate quite a tight range today
support around 9990(should this fail I'm stuffed) and resistance around 10050.My read of Fins is that(considering their spread earlier today)they anticipate upwards pressure if any.The best opportunity might be a spike at the start of trade.Don't usually do this as normally I'd be asleep
and prefer not to see what's going on but when I'm about I just feel the need to take a peek.
Glad I'm not long term short mind but it could easily come back your way eventually it's just that I prefer the day to day stuff.
Good luck.
Off to fix the Citroen(again)See you at the open perhaps.
Cheers
Tel

Simple comme bonjour.
 

frog

Junior member
49 2
Hi all,
Just finished the motor which now bounces as it should.It's got that typical Citroen suspension
the front of which had progressively lost its give.
Just noticed that Fins have moved their spread further from the yesterdays' close,serves me right for peeking I suppose,it's a better position than I took this morning but "c'est la vie" as we say here.

Simple comme bonjour
 

Calvin

Junior member
30 0
I prefer the day to day stuff too really - I never intended this sell position to be a long term one, it's just sort of working out that way...! I actually got back to break even on the Dax earlier, and thought about closing the position, but with my usual skillful reading of the market I thought it might carry on down, so naturally it's bounced back up now. Great.

And the Dow has, of course, swung 40+ points up again. A move one way, followed by a more forceful swing the other way to close seems to be the way of things at the moment...
 

frog

Junior member
49 2
Calvin said:
I prefer the day to day stuff too really - I never intended this sell position to be a long term one, it's just sort of working out that way...! I actually got back to break even on the Dax earlier, and thought about closing the position, but with my usual skillful reading of the market I thought it might carry on down, so naturally it's bounced back up now. Great.

And the Dow has, of course, swung 40+ points up again. A move one way, followed by a more forceful swing the other way to close seems to be the way of things at the moment...

The open was very interesting and despite the Dow dropping to about 10019,Fins moved their spread up and put me a winning position straight away.I've been out shopping since and have come back to a small 19 point gain and it's looking flat and dull to me, so I will keep watching.Wouldbe good if it could get over 10050 with a bit of conviction and give me some more gains but I doubt it.
Cheers
Tel

Simple comme bonjour
 

frog

Junior member
49 2
Calvin,
Can't stand it any more and have just sold for 10088 for a gain of 60 points which is quite a result considering my earlier prognosis.Should it continue and go through 10080 with some conviction(Wednesdays' close)then I've missed some greater gains but I'm pleased with my unexpected result.I'm off for a Ruby to celebrate.Will try and post my dealings over the weekend to give you an idea of what I'm doing.
But for now I'll leave you with this thought;
Imagine the worse scenario,Bush assassinated(not sure about that one),we run out of oil or Greenspan admits he's screwed it up.What would happen to the Dow?Where would Fins set their spread and what would you do ?
Have a good weekend
Good luck
Salut
Tel.

Simple comme bonjour

Just checked back with Fins and it seems to have flatlined for the minute.I'll look at the close later and see if I did right to pull my position when I did.I don't know how people can sit and watch the screen all day,it plays total havoc with my swede and is about as interesting as watching jelly set.On that note I'm out of here.
 

Airthrey Capital

Well-known member
370 18
Meanwhile, getting back to the subject of spreadbetting..........

Assuming you are a high rate tax payer in the UK, and you are not trading professionally, and you earn more income from your usual day job than from spreadbetting........

Let's take the example of someone who wishes to buy a FTSE option from an SB (say, City Index), compared to making the transaction through a traditional options broker (say ODL Securities / MyBroker)


1) City Index Example

Sep FTSE 4475 Call - ( City Index Quote 20-24)

Action: place an "up" bet at £50 per point at 24 to open

7 days later....

Sep FTSE 4475 Call - (City Index quote 30-34)

Action: place a "down" bet at £50 per point at 30 to close

Result: £300 trading profit

= £300 profit


2) ODL Securities Example...

Sep FTSE 4475 Call - (Market quote 21-22)

Action: Buy 5 lots at 22 to open

7 days later...

Sep FTSE 4475 Call - (Market quote 31-32)

Action: Sell 5 lots at 31 to close

Result: £500 trading profit Less £48 commission Less£200 CGT

= £252 Profit


Granted, in my example above, both the market quote and the City Index quote have moved exactly in line ( i.e 10 points). In reality, there may be some bias of a point or 2 either way in City's quote.

If your profile fits the opening paragraph, it may well make sense to spreadbet after all.
 

frog

Junior member
49 2
Is that aimed at me?
I thought my general comments were about spreadbetting.
It can be quite stressful and I can't see any real harm in a touch of social banter.
I assume it's a senior members perogative to chastise us amateurs and I bow to your obvious
superiority.
I was hoping to show those learning the ropes an alternative to the usual ideas for successful trading but I'm not fussed whether I do or not,it's your choice.
But before I leave I would ask if you actually traded the FTSE scenario and acquired the spread
that you have quoted 'cos I'll change my SB provider forthwith.
I'm just home from the nightshift and am rather tired(I apologise yet again for going off topic)
but as a parting gesture will post my last weeks trades,spreads and S/Ls that I took on my 5 successful positions on the Dow before the day is out.

Frog

Les mots sont facile à dire mes les actions parlent beaucoup plus fort.
 

frog

Junior member
49 2
And by the way I don't pay tax on my winnings.Yawn.
But you have to win some to entertain the idea.
Only trying to help someone who asked my opinion.
Bloody hell is it always this "clicky" in here

Simple comme bonjour
 

frog

Junior member
49 2
Blairlogie said:
vous avez un probleme avec ca, monsieur le grenouille?
Mon bien cher Tony,
Pas du tout et merci du compliment de me parler en Français.
No problem at all sir and reading the thread from the beginning,indeed I do appear to have deviated somewhat but in my defence I was only trying to illustrate some other good reasons to SB apart from the debatable tax angle.
If I were totally honest having to pay tax would mean that I was making loads of dosh and probably wouldn't be that bothered anyhow or could afford to pay a bloody good accountant to sort it.
I am probably wrong but I thought there was an element of tax within the spread which is covered by the SB companies or was this a probability at some point ahead of a proposed Gordon"I won't increase taxes"Brown.
Cheers
Tel
 
 
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