Comparing Spread Betting, CFDs, Options and Warrants


This section concerns questions about spread betting, CFDs, futures, options, warrants and turbos and how these products compare to each other. We also look into the safety of client funds and how companies segregate client monies.
Q.
What are Quarbs?
Q.
I was margin called and I ended losing my past gains. I didn't lose my money; I just lost the money I gained over the last 2 weeks so I'm happy.
Q.
I have more winners than losers yet I still keep losing overall?
Q.
I decided to buy 50 Nikkei 225 using Capital Spreads. I had done ok so far on the FTSE, so my trading resources were at about £10,800 but soon after I made this bet suddenly my trading resources showed (4,200), which I take meant I was minus £4,200. I cannot understand this figure.
Q.
Are CFDs and Spread Betting the same thing?
Q.
Is it better trade indexes on CFD or Spread bet?
Q.
Which are most cost-effective - daily rolling bets or equity CFDs?
Q.
Given all the tax advantages of spread betting, could you explain why institutions/hedge funds don't choose spread betting over CFDs?
Q.
Do most professional day traders use spread betting in their day-to-day work or actual share transactions?
Q.
How do spreadbets and DMA compare to each other?
Q.
Are there any advantages to using Spread Betting to trade as opposed to Direct Market Access?
Q.
What about Options?
Q.
Can you show me a practical trading example of Options?
Q.
What are the intrinsic value and time value of Options?
Q.
Hi, I use spreadbets to hedge my options positions, and would like to know how to use contingent orders in this respect.
Q.
What about Covered Warrants?
Q.
How do Covered Warrants and Turbos compare to Spread Bets?
Q.
What is the likelihood of spread betting becoming taxable?
Q.
Do you know if this human accepting every transaction is standard or differs between companies?
Q.
'All spread firms/bookmakers will close your account if you win consistenly from them, not just IG.'
Q.
Will spreadbetting companies cancel your account if you are too successful?
Q.
But I've heard of traders being put on dealer referral?
Q.
Using trade latency issues to trade...what is that?
Q.
Will binary betting companies limit my account if I'm winning consistently?
Q.
What is In-Running betting?
Q.
What are Bungee Bets?
Q.
Are spread prices ever skewed?
Q.
Do spread betting companies move the spread around to advantage themselves?
Q.
My son read that some spread betting companies purposely adjust their prices near your stop loss so that it is breached.
Q.
Obviously the betting company wants my money and would love the share to start to dropping, so do they have the means to make this happen i.e. start to sell big chunks of BYG shares?
Q.
I've been stopped out although the price never got anywhere near my entry price...?
Q.
Does investing via the spread betting route actually impact the underlying price of the share?
Q.
What happens if everybody on earth simply spread traded - wouldn't the markets not stop moving?
Q.
Am I really trading the FTSE 100 or Finspreads' own version of the FTSE 100?? I am betting against others betting on the FTSE!
Q.
Am I really trading against the market or against the spread betting company?
Q.
Do spread betting firms hedge their customers' bets?
Q.
So the bookie won't hedge all bets in the markets right?
Q.
'There is no trade entered on any market anywhere when you place a bet with them...'
Q.
But isn't it all a big scam if they don't hedge all client positions?
Q.
Tell me more about how spread betting providers counterparty risk management?
Q.
So is spread betting just a con?
Q.
What if my spread betting provider goes bankrupt!?
Q.
But how ringfenced are client accounts in practice? My understanding is that accounts are only ringfenced from the firm, not from each other...
Q.
What is the situation in Ireland? If an Irish regulated spread betting firm goes belly up is my account balance at risk?
Q.
But won't spreadbetting firms go bust because of the winners continuing to make money?
Q.
Providers usually thrive on volatility so why have some spread betting companies registered losses in the collapse of the equity markets?
Q.
What is this talk about my funds being less secure with a stock broker's nominee account?
Q.
What if I have a complaint?
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Isn't spread betting gambling per UK law and thereby debts not legally enforceable?
Q.
Looks like Finspreads, smells like Finspreads, but it's called Easy2Spreadbet! (huh?)
Q.
What is MiFID and what are its objectives?
Q.
What are the implications of the Markets in Financial Instruments Directive and how does this affect you?
Q.
How does it feel like working in a spread betting company?

 ...Continues here - Questions on Market Workings

Hope that answers some of your questions but feel free to send me queries, comments or concerns at traderATfinancial-spread-betting.com

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