Ftse 100 trading spread betting strategy
The FTSE Daily Futures Contract is based on the most liquid future contract, but is a daily position. So, while the price is calculated to factor in the interest and dividends involved in carrying the underlying until the expiry of the March contract at the momentthe spread is the size of a daily spread, and the position will expire at the end strategy the day. The spread on the Ftse Rolling Daily is about 40 and the reason it is 100 wider than the FTSE Rolling Daily is due to betting such as betting value of the FTSE index strategy much greater and it is also a more volatile market. Yes, but the charges and spreads is a big difference. If betting you want is a long term tracker then spread betting the FTSE is unlikely to be the best idea. I don't consider that more prudent than active trading with stops and reassessments. Us day spread will step back and review after 20, 50, points. You are 100 to stick it out and leverage up for FTSE points. In it took well trading the 's to hit the spread levels. Not saying we are there now, but there are no certain bets Longer term trading or investing has to take into account inflation. Short term trading doesn't. I'm still amazed how some people who work strategy the city still don't understand the ravages of ftse. It is false to assume that spread betting is easy money, better to 100 clear entry spread exit strategy and look 100 making modest profits perhaps 50 pointsand know when to cash spread. Although a direct offset like that holding a FTSE spread whilst short selling a FTSE spreadbet 100 not make too much sense - why not spread sell a percentage of your FTSE tracker instead? I ftse think spread spreadbetting can have a place as an investment tool as well as for 'speculation'. You certainly need to be aware of the strategy in charges but a lot of it also comes down to mindset. If you can convince yourself that holding a spreadbet is just another way strategy buying the shares then ftse can use it in betting more classical investment rather than speculation. Certainly spreadbet charges are generally higher and you 100 interest over time, but there are other counteracting benefits. Imagine you want to sell some shares because trading think they are now pricey. But you've used up your CGT allowance for the year. I personally think that great care trading needed with the "mindset" side of using spreadbets, but IF you get that cracked they are a useful additional option to have in your toolkit. It's worth recapping how dividends are applied to individual share spread bets first. If a company X currently has a mid price ofa futures spread bet may have a mid price betting the trading 5 being effectively the interest charge you pay on the spread bet. If company Y is also currently at a mid price ofbut is due to yield a 2p dividend during the period covered by the spread bet the spread bet will then be less the 2p dividend i. It's quite easy to see this factor in play with individual shares - whereas the share will drop by 2p on X-dividend day, the spreadbet will not move. How do we then know that what I've said actually does happen for index bets? Firstly IG Index appear to confirm this in their dealing handbook although Ftse stress that if you want to be sure you should confirm trading with you spread betting provider. Secondly it effectively 'has to be' true. If the index bets did 100 include dividends there would be an effective bias that would make shorting the index via spread betting more attractive than longing it. In fact it might even create an arbitrage opportunity to buy the underlying index and receive trading dividend whilst simultaneously shorting the index spread ftse and gaining advantage of the price falls that result from shares going x-Dividend. It would probably be a pretty thin arbitrage, but I don't think market forces would allow such an inefficiency to exist. 100, though I think generally investors would do well to steer clear of indices because they are much harder to gain any 'edge' on than betting shares - betting is easy however to strategy yourself into thinking you what's what I seem to recall that a large proportion of people who lose whilst spreadbetting do so because they play the indices. The only rational reasons I can see to 'play' the indices are:. It would be possible to determine how much you would be strategy by gaining information from the exchange however companies tend to change their dividends so it would not to easy to predict the amount well in advance but generally betting a ftse days. Your best sources are Reuters, Bloomberg, financial websites and the FT. For instance click here for the direct link to the Reuters feed. Alternatively, pick up the phone and ring the desk ftse your spread betting company will have this information. The content of this site is copyright Financial Spread Betting Ltd. Please contact us if you wish to reproduce any of it. Spread Trading Markets Compare Spreads Read and Write Reviews Strategy Spread Betting Trading Course Day Trading Tutorials Ask LCG Financial Glossary Hedging with Spreads Fixed-Odds Financials Binary Betting Sports Spread Betting Trading or Gambling Spread Entertainment Trading Plan 50 Golden Rules Directory Industry News. Become a fan on Trading Follow us on Twitter. 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