Comments on: What is financial spread betting?

By: Brad

Brad — Tue, 28 Jun 2011 07:05:07 +0000

I’ve tried financial spread betting before. And it’s true that the friction costs are the smallest and you can easily start trading with a minimum amount of money.

Too bad there’s not so much literatures & books about it.

One drawback I can think off it that you need a constant check on your position. You can’t just open a position and go to sleep, so to speak.
.-= Brad´s last blog ..Investing Gold ETFs and Silver ETFs =-.

By: Dick Ensel

Dick Ensel — Fri, 22 Jan 2010 17:09:23 +0000

I’ve been involved in trading for in the area of 4 years to date and I’m constantly looking for beneficial websites and writings. This one really strikes a chord with me and I’m giving thought to republishing it on my own blog. Do you have any objection?

By: Sarah

Sarah — Thu, 14 Jan 2010 09:47:35 +0000

Great introduction and look forward to more articles. In the meantime, another good source to strengthen your theoretical foundation is http://www.finspreads.com. The site has a good collection of spread betting market news and real experiences.

By: Spread Betting

Spread Betting — Thu, 07 Jan 2010 12:39:48 +0000

Hey, if you have an interest in financial spread betting you may be interested in a spread betting forum I’m launching in February on the Trading Spreads website. The forum is now open to registrations but won’t become live until February.

By: Petra

Petra — Wed, 06 Jan 2010 04:18:27 +0000

Interesting, Manuel. Never heard of Turbo Bulls before; I don’t think they are used in the UK. As for orders, it’s the same with spread betting, you can use limit orders, stop loss, OCO, etc.

By: manuel

manuel — Mon, 04 Jan 2010 18:58:54 +0000

and you can buy them for Commodities, Indices, Common Stocks……

By: manuel

manuel — Mon, 04 Jan 2010 18:54:17 +0000

the Good thing about turbo bulls is that they accept stop loss orders……

By: manuel

manuel — Mon, 04 Jan 2010 18:49:39 +0000

Thank you for the answer, well mini futures or Turbo Bulls do trade electronically but there is not a market that sets the price, there is the Market Maker of the Banks that emitted them who sets the price following the underlying, you pay a little more the price of the underlying because the bank finances you the margin for the Future, they come up with the money, you just pay the interest and it is included in the price, so basically they work the same way your spread betting, they have great leverage and your counterparty is somehow safe, Big Banks with solid ratings: Commerzbank, Deutsche Bank, Goldman Sachs, Hsbc,……

http://zertifikate.onvista.de/suche/vergleich.html?STEP=2&TYPE_UNDERLYING=a&CAT_ID=15&SEARCH_VALUE=DE0008032004

Check them out, you can choose open end Turbo bull calls or with an expiery date

Ah I left you a message on Seekingalpha, that is where I found out about your website……

By: 4Rs

4Rs — Mon, 04 Jan 2010 06:05:49 +0000

Some interesting reading, I want to thank you Petra for helping me understand how this works.

** Reads some more while waiting for more information from Petra

4Rs

By: Petra

Petra — Mon, 04 Jan 2010 05:36:53 +0000

Manuel, I’ve never traded mini futures, but I think they trade (electronically) on the CME? Spread betting is off-exchange. Also, with spread betting you have a larger variety of markets to trade – indices, commodities, forex but also individual equities (US, UK, Europe). The margin (deposit) required is usually very low – about 3% for indices, and 5-10% for large cap stocks. With spread betting you have the same volatility as if trading the same stocks directly on an exchange (the prices mirror the market prices of the underlying instruments but with a slightly larger spread). Spread bets have either quarterly expiry (futures based) or daily – daily bets can always be rolled over though, so for short term trading most spread bettors use rolling bets.