Spread Betting

[sweetandsour]

Spread betting is a mugs game, 95% lose in the long run, and unless you have good reason why you are going to win (and thinking you have a good feel for market direction in your chosen stock or index is not a good reason) you will be one of the 95%.

It is a zero-sum game.

No value is added by playing it, money is just transferred between the players.

Some will win, some will lose.

That doesn't stop all the largest financial companies running proprietry trading desks in every market. That should tell you all you need to know.

[Iron Condor]

It is a zero-sum game.

No value is added by playing it, money is just transferred between the players.

Some will win, some will lose.

That doesn't stop all the largest financial companies running proprietry trading desks in every market. That should tell you all you need to know.

Spread betting is not zero sum.

The spread betting firms make 100s of millions a year out of the punters

[Pondlife]

That doesn't stop all the largest financial companies running proprietry trading desks in every market. That should tell you all you need to know.

Are you using that as an argument for or against?

So, you have a group of people who do this for a living, have all the most up to date information and who can process huge transactions instantly.

And then this happens

[Pondlife]

Spread betting is not zero sum.

The spread betting firms make 100s of millions a year out of the punters

Agreed

[Moscow Mule]

If you think spread betting is a mugs game, then you must also think buying shares / index linked trusts etc are a mugs game.

There's no difference in risk between using money to buy shares or keeping that money in the bank and putting an "up" spread bet on.

You might find the money you kept in the bank is needed to cover your losses, but as long as you remember that, you won't lose your house...

[Liability]

Anyone here dabble?

While I was on the bench for a few months last year, I made some pretty good money. Not had time since I've been non-benched, but I reckon if I can "work from home" for a couple of days a week it could be worthwhile again.

I do it and have done very well on it

I currently have a yearly on OIL which is now up over 20,000 points - and rising. Key is to focus on the 3 month to yearly spreads and on things which are lower risk.

Ive pretty much cleared all my debts from shares and spreads over the past 2years and thanks to Barclays have an extremely tidy sum banked.

There's a thread somewhere here where I posted - and majority of people were of the opinion Oil would be declining which made no sense ...so I wouldnt pay too much attention to a few on here on trading. Just being honest.

Stick with low risk, research the market and stick by your trades.

[JoJoGabor]

My knowledge is limited on the subject, but surely with spread betting you are betting against the opinion of the professionals? They define a spread and you make money if whatever financial instrument you are betting on falls outside that spread, ie the professionals or bet-makers were wrong.

I would not fancy my chances of betting against the professionals.

In normal stock investing, ie betting long, you are simply betting htat the share will increase and this is easier to predict based on how their business is doing, and how their cots are affected by commodities/labour etc.

[Moscow Mule]

My knowledge is limited on the subject, but surely with spread betting you are betting against the opinion of the professionals?

Not really, you're mostly betting against a formula based on the current price and indices.

[SuperZ]

I don`t know much about it but it`s another form of gambling I reckon. I have a shareholdong in one of the spreadbetting firms though as I know a lot of mugs will be interested in trying it.

[Moscow Mule]

I don`t know much about it but it`s another form of gambling I reckon.

The clue is often in the name of things