FSB: What other order types are available to be placed?
Andrew: Customers can also place limit orders meaning they can specify levels where a trade is closed out for a set amount of profit. For example, if a client believes the FTSE will only reach a certain level, say 4500, before dropping, the individual can set the limit order to close out at that point to avoid missing out on potential winnings. As mentioned previously, opening orders are hoped to be introduced in the near future.
FSB: It seems that I can set each individual trade to roll or not at Shorts and Longs - is this so? If so, this seems better than having all bets rolled over by default.
Andrew: Yes, again we have tried to offer customers as much control over their trading as possible so individuals can choose whether or not to roll their trade on our daily prices. To roll trades there is a small administration fee, which is industry standard.
FSB: Do you offer after-hours trading? Can orders be placed when the markets are closed?
Andrew: At the moment we do offer limited after-hours trading. For example, our UK 100 Daily market is open 8am-4.30pm then 4.45pm-9pm and the Wall Street Daily from 7am-9pm. Currently our customers cannot place orders when the markets are closed but, as mentioned previously, this is an area we are working on.
FSB: What interest rate is charged on long overnight held positions?
Andrew: One per cent over one month LIBOR.
FSB: Can future spread bets be rolled over on expiration? And if so do you charge a closing spread on contracts (say FTSE or Wall Street bets) that are still open at expiration i.e. if one allows a bet to run to expiry is the spread still charged on the close?
Andrew: Yes, you can roll over your trade into the next contract by closing off and re-opening the next contract. This is not done automatically. To roll a futures trade, clients would need to manually close off the position and then re-open in the next contract. Unlike some other spread betting firms, there is no spread charged on expiry.
FSB: Are there any fees which clients need to be aware of such as account inactivity fees, depositing and withdrawing fees, telephone dealing fees..etc?
Andrew: Apart from the administration charge on rolling trades - mentioned above - and a 1.5% charge on credit card transactions (there is no charge on debit or Switch cards), the main fee for clients to be aware of is that to contact us by phone you have to do so via a premium rate phone line. This is because ShortsandLongs.com has been designed to operate, as much as possible, as purely an online facility. This helps to cut down on the staffing costs associated with offering a bespoke phone service or with providing account managers, as is the case with Spreadex, and helps to allow us to offer the Free Guaranteed Stops and tight spreads.
If ShortsandLongs clients have trading queries and don't want to use the premium rate phone line they can email an information email address (infoatshortsandlongs.com), which is fully manned. There is a secure messaging system for the use of members when logged into their account, which sends queries direct to our trading team. And we also have an extensive FAQs section online.
FSB: Are dividends paid on index positions?
Andrew: Not strictly speaking, but the effect of dividends are factored into the rolling costs on indices bets. For example, on the FTSE100 on a Tuesday evening, if any dividends are payable, your account will be credited (or debited if you have a short position) by the value of the dividends as well as any standard rolling charges. This takes into account the difference between the cash and future FTSE prices which may be caused by, in the above example, any dividend payments that week by the FTSE100 stocks.
FSB: Please explain how you handle re-quotes and order confirmation times. If I place an order will the price be re-quoted? And fast markets?
Andrew: When you bring up a deal ticket to place a trade, the price you are being quoted will constantly update so the only time a rejection would happen is if the market moves significantly - ie outside the stop or risk levels specified on the ticket - before the trade has been confirmed, however this is a rare occurrence.
If this does happen, clients can request another quote immediately. In times of fast markets we have not experienced any significant problems with clients putting trades on.
FSB: LongsandShorts offers mandatory free guaranteed stops on all trades. Are there any other unique traits which makes your offering unique?
Andrew: Our key, unique traits are the Free Guaranteed Stops, tight spreads and the fact that members can never lose more than is in their account no matter how much the market moves against them.
We would also argue that the design of our trading platform is a major advantage to traders in terms of its ease of use.
FSB: The launch of ShortsandLongs has come with its own share of controversy - some traders have stated that ShortsandLongs portrays trading as glamorous and exciting which appeals to the wrong senses in the human psyche in order to be successful. Please comment.
Andrew: Our market research showed that spread betters and traders were keen to see a more 'lifestyle' approach towards spread betting and trading on the financial markets. Feedback suggested that those that we interviewed felt many of the existing sites and providers were very 'samey' and lacked personality.
Our website and initial advertising campaign was designed to bring a fresh approach to spread betting. In no way was it designed to portray spread betting as 'glamorous or exciting'. If anything, we have gone the opposite way in terms of the product offered to make it safe and controlled for our customers.
FSB: Are there any markets/indices (if any) which may be better suited for beginners (in your view) in terms of research and analysis? What advice would you give someone starting out?
Andrew: By far our most popular markets are Wall Street and UK 100. Gold, oil and cable (GBP/USD) are also well traded and certain stocks seem to attract more interest than others. Much of the time activity can mirror what is making headlines in the financial news or can be related to which markets are showing most volatility.
In terms of what beginners should trade on it completely depends on the individual. Like any investment opportunity, people should be comfortable with the concept they are entering in to before they take the plunge and only risk what they are prepared to lose. Obviously ShortsandLongs.com offers strict controls on managing risk so is good for beginners from that point of view as well as being attractive for seasoned traders.
We also require members to carry out an 'appropriateness test' before they trade if they are new to spread betting. This way we can determine whether we think a client has the necessary experience and knowledge to understand the risks associated with spread betting.
FSB: Back in the 1980s, spread betting was little more than a fun sideline for City traders, but today this business offers a well-established form of alternative investment. What's your view on the future of spread betting in general?
Andrew: The popularity of spread betting has grown enormously in recent months and years as people search for alternative investment opportunities, particularly in the current economic climate where share returns are plunging and uncertainty surrounds pension funds. When Spreadex was established there were only a handful of financial spread betting providers but at last count we noted as many as 27 different financial betting sites - albeit with some providers offering more than one product as is the case with Spreadex and ShortsandLongs.com.
Some people argue that there are now too many providers and that while the number of active spread betters may continue to grow, there isn't enough demand in the market place to support the number of current financial spread betting companies. But the number of providers in the sector could yet increase further before it reduces.
FSB: Tell us what distinguishes you from other sites - why should our readers use ShortsandLongs?
Andrew: If you've traded before, you'll appreciate our Free Guaranteed Stops [we are the only company that offers Free Guaranteed Stops], Exceptionally Tight Spreads [for instance UK 100, (FTSE) Daily - 1pt, UK 100 (FTSE) Future - 4pts, Wall St 30 (DOW JONES) Daily - 4pts, Brent Crude - Daily Future - 6pts, Gold - Daily Future - 0.5pts, GBP/USD, Spot - 3pts], Fast Executions and Low Deposit Requirements to access the world's markets.
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