I just was wondering is it a safe bet going long or even short on companies after they release trading updates? do most people do this after news is released?
ive never used my spread account which ive had open for a while, and was going to start dabbling using it. just wanted other peoples opinion and advice on spread betting?
I was thinking of going long tomorrow on Churchill China...
thanks
Why use a spread bet for going long? Why not buy the shares instead. With spread bets the spread is usually wider than buying shares. I use spread bets to short an index if I think the FTSE is going to crash rather than individual shares.
Churchill China currently has a spread of 5.3% on IG. Whereas the shares have a spread of 4.7%. Not much difference however, no commission or stamp duty for the spreadbet and you get the leverage which is always handy.
ive maxed out my isa. so thought spread bet would be another means to go long. but the intention was to go long on short term trades only as n for 2 weeks or so.
I think you will find the actual spread to be less on shares if you buy a normal amount, buys are going through at around 770p, no sells today but the spread is 750-785p. Do you not have overnight charges on shares in spreadbets? No dividends either. But yes there are some advantages.
I just had a quick look on HL who were quoting 750 - 785. If they can be bought at 770 that’s fair enough. Spreadbetting is a legitimate option if you’ve max out your ISA. Yes, you pay funding charges as you use leverage, however you only have to deposit 25% with the rest of your capital deployed elsewhere. You also get the divis just like normal shares too.
no i gave it a miss as the spread was to big a gap.
i did a spread on 888 the other day, which worked out really well for me
