Spread betting
- Thread starter Killa_ken
- Start date
spread betting is for complete mugs
you have a negative expectation of winning to start with, any edge you believe you have needs to overcome the larger spread
It is also a parallel market - the bookie can widen the spread, skew it or re-quote you at will
lastly, in most cases, they win when you lose
you have a negative expectation of winning to start with, any edge you believe you have needs to overcome the larger spread
It is also a parallel market - the bookie can widen the spread, skew it or re-quote you at will
lastly, in most cases, they win when you lose
It's difficult to place spread bets for the long term and control risk at the same time, particularly with limited capital.
I.e. on the FTSE 100, if you believe it's going up (brave!), you'd probably want a stoploss of at least 500 points to ensure you don't lose more than you can afford if it does go against you. So you bet 1 GBP per tick and set that stoploss, meaning 500 GBP is at risk. In the long term that isn't exactly leaving much margin since the FTSE could dive 501 points (stopping you out and loosing you all that cash) and then increase by 2000 over the next 2 weeks, in other words, your initial bet was correct but since you didn't have enough capital to stomach the downward spike, you've lost 500 quid.
Your call - I made 100% in 1 night spreadbetting once (massive risk) and then lost everything including my initial account over the next 2 weeks - slippery slope
I.e. on the FTSE 100, if you believe it's going up (brave!), you'd probably want a stoploss of at least 500 points to ensure you don't lose more than you can afford if it does go against you. So you bet 1 GBP per tick and set that stoploss, meaning 500 GBP is at risk. In the long term that isn't exactly leaving much margin since the FTSE could dive 501 points (stopping you out and loosing you all that cash) and then increase by 2000 over the next 2 weeks, in other words, your initial bet was correct but since you didn't have enough capital to stomach the downward spike, you've lost 500 quid.
Your call - I made 100% in 1 night spreadbetting once (massive risk) and then lost everything including my initial account over the next 2 weeks - slippery slope
Man of Honour
You want to be a mug, then go ahead.
Soldato
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Killa ken, ignore the people who call you a Mug they in all likelyhood dont understand whats going on, and have never done it before in their life.
I use IG Index, they are good.
As long as you understand the risks involved and are willing to possibly lose money then, its your money to risk as you choose.
Ive been doing spreadbetting, and ive won, and ive lost, setting a stop reduces the risk so please dont let others put you off.
Most people on here, who ask theis type of thing, want to do it and just want someone elses permission.
DO IT your an adult, you understand the risk, just dont be too upset if you lose your money
I use IG Index, they are good.
As long as you understand the risks involved and are willing to possibly lose money then, its your money to risk as you choose.
Ive been doing spreadbetting, and ive won, and ive lost, setting a stop reduces the risk so please dont let others put you off.
Most people on here, who ask theis type of thing, want to do it and just want someone elses permission.
DO IT your an adult, you understand the risk, just dont be too upset if you lose your money
Soldato
Soldato
What about incomplete mugs?
Ive only got one arm and am missing a bellybutton, can i still do it?
It's exactly the same
You are betting on an outcome of an event.I'm also considering this but haven't done enough reading yet.
KK be very careful spreadbetting. I would certainly say the market is NOT a one- way bet from here- we have only just entered a recessionary phase, and there will be issues in unemployment, manufacturing, retail, real estate that will give the market a few downward spikes yet.
I don't know much about it, but I have also heard people talk about the unwinding of derivetives at some point in the future. Given the amount of phoney money tied up in these 'vehicles', we could be in for a lot more pain yet!
I don't know much about it, but I have also heard people talk about the unwinding of derivetives at some point in the future. Given the amount of phoney money tied up in these 'vehicles', we could be in for a lot more pain yet!
Soldato
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when i was trader, i got sacked for losing 128k in one day.
You either weren't a trader, or you did more than "lose 128k" in one day. I'm willing to bank on the former.
Soldato
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The 128k was the last staw. If im honest i wasnt very good at it.
I have a first class maths degree from a "proper" uni, and thought i knew it all, a lot of it is reading **** loads and knowing how the market is going to act and knowing what going on in the business world, i was too lazy to do any of the leg work and i suffered
Getting the sack was the best thing that ever happened to me. I worked hard and now have a senior tax role in an investment bank.
I have a first class maths degree from a "proper" uni, and thought i knew it all, a lot of it is reading **** loads and knowing how the market is going to act and knowing what going on in the business world, i was too lazy to do any of the leg work and i suffered
Getting the sack was the best thing that ever happened to me. I worked hard and now have a senior tax role in an investment bank.
Soldato
When I owned an oil field, I got bored so just gave it away - too much money!
yep.
Off topic, but shouldn't the '<' in your sig, actually be a '≤'?