Financial Spread Betting

mcirl2

Hi,

I have been doing some betting on a demo spreadbetting account.

I can see if you are lucky you could win a good bit (and lose also...).

The question I have is -

How easy is it to get your money out and who are the most trustworthy spreadbetting brokers / sites.

I have a feeling that if you were doing well they (company) could start putting in your trades in later / not closing them when you request.

Also - theoretically speaking, if you bet €1000 per point (IF your nuts ) and the market moved 100points in your favour could you win €100k. Could you get your money out / would the company be able to give you that much without having liquidity problems.

I know in reality this bet is unrealistic but could it work theoretically.

I would be interested to hear if anyone spreadbets often and what are the things to watch out for apart from the big risk factor (I know all about it).

Sorry for the long post but any advice would be great!!

Thanks,

Mike

portomar

i work with deltaindex, and getting out money is never a problem. one way deltaindex sell themselves is better than a stockbroker becaus if you ring up a broker, allegedly, they will quote you a different rate dependant on whether youre buying or selling, thereby making their own "spread" of sorts, on top of the fees.

deltaindex operate a client account in aib and boi, you transfer cash from your own account and put your client number in the narative and it goes straight in. if you want cash out they send a cheque or transfer to a nominated account. their spreads are clearly posted, when you look at a price, it is given as lets say 16,758-16,768 as in the spread is €10 per point.

cant vouch for any other company but deltaindex are straight down the line, cant see them being up to any of the shananigans you asked about.

as for your example, i can tpossibly see a situation where you could put €1000 per point on anyhting, given most have a min-max bet of 1-100 per point. (google has a 1-10 per point, a spread of €100 and you need €6,000 in your account to bet €1 per point on a qurter contract! you need €10,000 to bet €1 on a rolling contract. but google is mental.

portomar

also, the things to watch out for are volatility of a stock, and knowing your trade duration, i.e. if the stock is volatile and your short on cash, your probably going to be looking for daytrade, i.e. in and out on a one or two day movement, which means watching the chart like a hawk all day. alternatively, less volatile, like some uk stocks, you could leave for a few months, if your view was medium term growth or weakness.

daveirl

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portomar

daveirl wrote: »

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thats something i meant to say, essentially, though a spread betting company is registered as a book maker, what they essentially do is closer to that of a retailer. They buy options of stocks, currencies, commodities etc. on options exchanges (wholesale in this example) and sell you a "bet" on the same thing at a higher spread or price (retail) therefore, the more you win, the more you trade, the more cash they make. liquididty in this example couldn't be a problem because its not their cash anyway. When you log on to deltaindex, you place lets say a €1 long bet on google, they straight away buy the same amount in a long contract on google in an option account, or more likely, add to an existing position.

Bluetonic

daveirl wrote: »

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Exactly, the company only make the spread they don't take their own positions.