Spread Betting Tax

Future 2050

:DAt the moment spread betting services such as delta index and paddy power spreads has no tax.

I was wondering does anyone know fo certain if the givernment bring in a betting tax which appears to be on the cards will this apply to spread betting.

Thnaks in advance.:cool:

crapmanjoe

Future 2050 wrote: »

:DAt the moment spread betting services such as delta index and paddy power spreads has no tax.

I was wondering does anyone know fo certain if the givernment bring in a betting tax which appears to be on the cards will this apply to spread betting.

Thnaks in advance.:cool:

Ive had a few discussions with Financial controllers of two very large Irish based Spread betting companies and they both reckon it is high unlikely that a tax will be introduced.

The reason being that if they introduce a CGT element to it,then they will have to allow deductions for spread betting losses.

The vast majority of spread betting customers lose money on their trades so I think they are happy with things the way they are.

Future 2050

When you say most people lose on spread betting. What do you mean?

I would of thought it was a good way of investing/betting with a small amount of money. Can you expand on this comment please?????:(

Goodluck2me

Future 2050 wrote: »

When you say most people lose on spread betting. What do you mean?

I would of thought it was a good way of investing/betting with a small amount of money. Can you expand on this comment please?????:(

its very high risk, which means the chance of wipeout are higher. I.e. if you flip and coin, and every time you lose you double you wager, soon you will run out of money, the house however wont. so you can win and win and win but eventually you lose and you're out.

mickman

Goodluck2me wrote: »

its very high risk, which means the chance of wipeout are higher. I.e. if you flip and coin, and every time you lose you double you wager, soon you will run out of money, the house however wont. so you can win and win and win but eventually you lose and you're out.

why would you double your wager? the problem you describe is also very common in buying shares, its called averaging down. Discipline problems dont just exist in spread betting, they are in all aspects of the stock market.

crapmanjoe

Future 2050 wrote: »

When you say most people lose on spread betting. What do you mean?

I would of thought it was a good way of investing/betting with a small amount of money. Can you expand on this comment please?????:(

From discussions with the CFO of the two companies I dicsussed above and review of the customer balances Id say about 90% of money lose money on it.

In saying that alot of people win but alot lose big

Its factors like wide spreads on shares, tight stop-losses and obviously poor trading strategies are behind this.

Spread betting (as hinted by the name) is a form of gambling and the bookie always wins!

mickman

crapmanjoe wrote: »

From discussions with the CFO of the two companies I dicsussed above and review of the customer balances Id say about 90% of money lose money on it.

In saying that alot of people win but alot lose big

Its factors like wide spreads on shares, tight stop-losses and obviously poor trading strategies are behind this.

Spread betting (as hinted by the name) is a form of gambling and the bookie always wins!

The same stats are true for all aspects of playing the stock Market. 90% of people who buy and sell shares also lose money. The same kind of people will win, I.e. People with a good strategy and discipline . It dosent matter what way you play the markets I.e spread betting or share trading .

RoadKillTs

The same stats are true for all aspects of playing the stock Market. 90% of people who buy and sell shares also lose money. The same kind of people will win, I.e. People with a good strategy and discipline . It dosent matter what way you play the markets I.e spread betting or share trading .

So trading oil futures on leverage is the same as buying and holding shares in Tesco?

Can't believe that. A lot of it comes down to risk. Speculating on margin on short term price movements is a hell of a lot riskier than buying and holding shares in strong cash healthy companies.

mickman

RoadKillTs wrote: »

So trading oil futures on leverage is the same as buying and holding shares in Tesco?

Can't believe that. A lot of it comes down to risk. Speculating on margin on short term price movements is a hell of a lot riskier than buying and holding shares in strong cash healthy companies.

oh dear! how can u compare oil futures with tesco shares?

why dont you compare apples with apples. if you spread bet on tesco shares then its very similar to buying shares in tesco! everyone seems to think that if you spread bet then your dealing with exotic risky things like oil futures - nonsense. you can spread bet on dead, dividend shares if you wish

there are many ways to trade oil futures, not just through spread betting.

the trades dont have to be short term. Some dont expire for 9 months and will roll over then so can be kept for as long as you want.

and by the way, how is that buying and holding going for you over the past 10 years :-)

RoadKillTs

oh dear! how can u compare oil futures with tesco shares?

I just used the above two as an example. You said it was the same for all aspects of the market and I disagree as different financial products have different levels of risk attached.

and by the way, how is that buying and holding going for you over the past 10 years :-)

Can't answer that question yet
Fair enough people can and do make a lot of money from spread betting but over the long term the majority of them end up giving back what they made to the house, essentially they are liquidity.

The only time proven way to make money from the market is by buying and holding shares in good companies.

if you spread bet on tesco shares then its very similar to buying shares in tesco!

No its not. What about leverage? What happens when the latest set of Tesco
results come in below market expectations and the SP drops 5% hitting my SL?

mickman

you dont have to use leverage if you dont want to. if you want to deposit enough money in your spread account to cover the shares going to zero then you can do that. leverage is optional

stop losses are also optional, again if you have enough money in your accoutn and dont over trade then this isnt a problem.

buying and holding is most certainly not the way to do well in the stock markets.

you seem to think that most people spread betting give back any gains they make, this may be true for 90% of people but its also true for 90% of people who buy and sell shares. spread betting is just a different way of playing the stock market, the same types of people will win at both and the same kind of people will lose at both

Goodluck2me

mickman wrote: »

why would you double your wager? the problem you describe is also very common in buying shares, its called averaging down. Discipline problems dont just exist in spread betting, they are in all aspects of the stock market.

I meant if someone loses their euro they put in two euro next time. Martingale theory.