Spread betting - Gambling or Leveraged Investing?

gerry87 · 23-01-2009 1:46pm #1

I'm thinking of opening a spread betting account for a little speculation fun, but in your opinion, is it just gambling or is it an easy (for retail consumers) way of leveraged investment. How is it different to Leveraged investing? Are there any t&c's that make a big difference (i saw one place charging a percentage if the position is kept open over night.) are these types of t&c's the norm?

(on a side note, what sites are good for it?)

Économiste Monétaire · 23-01-2009 4:35pm

Be very, very careful of leveraged investment like spread betting. You can lose more than the amount you originally intend to invest, but I believe you can cover, to some degree, the level of additional losses with a limited or controlled risk bet. You would probably get more comprehensive answer over in the Investments and Markets forum. Some people, I would hazard a guess, do it professionally. One place I always see advertised is CMCMarkets for online spread betting.

daveirl · 23-01-2009 10:06pm

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InReality · 18-02-2009 5:19pm

I've started with CMC recently. Its worth looking in to but take it easy to start with. and its easy to loose money on it.

Roonbox · 18-02-2009 6:05pm

I use worldspreads and IG Index -

The risk of losing more than your account is easily gotton over by using stop losses

and its its tax free. . .

bosra · 19-02-2009 10:43am

I'd be interested in hearing peoples opinions on spreadbetting vs CFDs ..Do you feel spreadbetting is a better option? I know the tax implications for both..As a trader, our firm specialise in a cfd service..I have tended to gravitate towards CFDs rather than spreadbetting as i think u can get a better fill (in terms of price) more often that not with dma..Though it seems that most posters here are happier with the spreadbetting option..All views very welcome? cheers

daveirl · 19-02-2009 8:19pm

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bosra · 19-02-2009 11:16pm

I hear ya..how do u find the spreads quoted? Are they tight? Is the comm built into the spread or can u opt for an external comm to be applied? thx

SteadyEddie · 20-02-2009 9:54am

If you are concerned about the risks of spreadbetting, for example the market opens below your stop (which i personally was), then you should consider a controlled risk account with igindex. You may a very small premium, but it means you have a guaranteed stop.

bosra · 20-02-2009 10:02am

hey Eddie..am just interested how tight the spreads are..just say im trading some rio..and they are 1836-1837 on the strip..how tight does the spreadbet track this..Dave, does IG mirror it and then apply an external fee/comm for ur trade..cheers

drdoon · 26-09-2011 11:05pm

ANyone use MarketSpreads in Ireland?

neris · 29-09-2011 9:02am

I find the charts and platform on cmc very good. the other site i use is delta index but havent used them much as I find the platform and chart a pain in the ass. The only benefit i found with delta was that you can pull money out of your account to your bank straight away through their site whereas with cmc you have to ring them

Spread betting - Gambling or Leveraged Investing?

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