Q. Why should I be wary of investing in a leveraged exchange traded fund? A: Leveraged exchange traded funds work in a similar way as the conventional Exchange Traded Funds, but they buy more futures, for the same cash...
Latest Posts
Oil Stocks, Contango and Backwardation
Q. How can I get exposure on Oil? A: Apart from buying securities in Oil stocks other ways to invest in Oil are as follows: Oil futures – you enter into a derivative contract based upon the price of oil. Contracts are...
Why do Spread Betting Bookies hate Arbitrage Traders?
Q. Why do spread betting bookies hate arbers? A: Simple. Spread betting providers don’t like arbers because, in the long run, they always win and the bookmaking industry always loses. No company is so arrogant as to...
Scalping, Day Traders and SpreadBetting
Q. What is scalping? We asked this question to the Managing Director of a spread betting provider -: A: There is no absolute definition of scalping but…from our viewpoint scalping is when a client continually attempts...
Spread Bets in SIPPs / Why do Big Banks Ban Employees from Spread Betting?
Q. Do you know whether spread betting and CFD’s are permissible asset classes in SIPP’s? Do you have any first hand experience good and bad? I am fascinated by the juxtaposition of the extremes in risk. A: Spread...
Expatriates and United States Residents
Q. Is spread betting regulated in the USA? What is the FCA equivalent in the States? A: No financial spread betting is allowed on USA soil or offering towards USA residents unfortunately. You might want to check out Nadex...
Exchange Traded Funds and Stamp Duty
Q. What is an Exchange Traded Fund (ETF)? A: Exchange Traded Funds (sometimes referred to as tracker shares) represent a portfolio of securities which can be stocks, bonds or other assets – that track the performance...
Hedging Against Market Crashes
Q. How do you hedge against market crashes? A: You can hedge against a crash by buying the share and selling/shorting the index. This is valid for any size portfolio and will limit your gains in a rising market but as long...
Hedging the Sterling against the Dollar or Euro
Q. How do I hedge against the Euro continuing to gain against the Sterling using a spread bet? As an amateur I’d have no idea how NOT to hold sterling. Setting up bank accounts abroad and transferring money back and...
Using Spread Betting for Hedging Purposes…
Q. How can I use spread betting to hedge my portfolio? A: A way to hedge against falling markets is to sell risky assets and buy into assets that are considered ‘safer’ by the markets. Spread betting allows you...