Financial Spread Betting

[BOOKEMDANO]

Never been one to consider investing in the stock market, it was always (as i thought) a little bit of a gamble with my hard earned money. Sure i've heard of success stories and recently you may, or may not of heard of an American company trying to buy out Cadburys the chocolate makers. He proceded to tell me that he had an account with the British firm (ing) and learned of this potential take over bid from Kraft. He thought it a good idea to 'go long' with Cadburys and placed a modest £100 on every point they went above the spread. At the end of trading, Kraft's take over bid got rejected, and Cadburys market value went through the roof and ended up some 455 points above their trading value at the start of the day.

Now, we can all do the math and work out that my friend 'in just 8 hours' made £45,500 TAX FREE !!

Rumour has it Kraft will come back with another (higher) offer. Worth a punt? Maybe!

My question is to anybody with knowledge of this financial spread betting albeit investing to be a good thing, do you have your own story to share?

[badge]

Never been one to consider investing in the stock market, it was always (as i thought) a little bit of a gamble with my hard earned money. Sure i've heard of success stories and recently you may, or may not of heard of an American company trying to buy out Cadburys the chocolate makers. He proceded to tell me that he had an account with the British firm (ing) and learned of this potential take over bid from Kraft. He thought it a good idea to 'go long' with Cadburys and placed a modest £100 on every point they went above the spread. At the end of trading, Kraft's take over bid got rejected, and Cadburys market value went through the roof and ended up some 455 points above their trading value at the start of the day.

Now, we can all do the math and work out that my friend 'in just 8 hours' made £45,500 TAX FREE !!

Rumour has it Kraft will come back with another (higher) offer. Worth a punt? Maybe!

My question is to anybody with knowledge of this financial spread betting albeit investing to be a good thing, do you have your own story to share?

Well that stories curious because the Kraft bid came during a weekend, so he could only have made the money if he was 'long'(bought cadburys) the from the friday before.

I dont really know what your asking, but spread betting is an esay enough way to trade financial markets if thats what you mean?

[BOOKEMDANO]

Well that stories curious because the Kraft bid came during a weekend, so he could only have made the money if he was 'long'(bought cadburys) the from the friday before.

I dont really know what your asking, but spread betting is an esay enough way to trade financial markets if thats what you mean?

Apoligizes for not making myself clear. I guess what i'm trying to ask for are 'people's personal experience' when it comes to using Spread betting websites for financial gain. I'm not talking about the futures market and riding the markets for a few months and hoping your shares would increase in value. I'm talking about selecting the companies that interest you (for whatever reason) and making a profit 'hopefully' within just a few hours. I myself am very new to this, and dont pretend to know a great deal about spread betting, hence my curious state of mind at the moment.

Does anybody use websites such as cantorindex or igindex ? and if so do you have any useful information for myself or anybody else who may well be?

[luckystrike]

for information on financial spread betting you might find this useful http://www.financial-spread-betting.com/

Edited September 22, 2009 by luckystrike

[KevinBloodyWilson]

Never been one to consider investing in the stock market, it was always (as i thought) a little bit of a gamble with my hard earned money. Sure i've heard of success stories and recently you may, or may not of heard of an American company trying to buy out Cadburys the chocolate makers. He proceded to tell me that he had an account with the British firm (ing) and learned of this potential take over bid from Kraft. He thought it a good idea to 'go long' with Cadburys and placed a modest £100 on every point they went above the spread. At the end of trading, Kraft's take over bid got rejected, and Cadburys market value went through the roof and ended up some 455 points above their trading value at the start of the day.

Now, we can all do the math and work out that my friend 'in just 8 hours' made £45,500 TAX FREE !!

Rumour has it Kraft will come back with another (higher) offer. Worth a punt? Maybe!

My question is to anybody with knowledge of this financial spread betting albeit investing to be a good thing, do you have your own story to share?

Jesus. 100UKP a point is not what I would call modest. He must like the adrenalin.

[aussiebebe]

Never been one to consider investing in the stock market, it was always (as i thought) a little bit of a gamble with my hard earned money.

Yes, not for nothing does the FSA consider spread betting to be gambling; it's tax-free because the FSA think there'll be more losers than winners.

He proceded to tell me that he had an account with the British firm (ing)

Your friend is probably loaded

He thought it a good idea to 'go long' with Cadburys and placed a modest £100 on every point they went above the spread.

This isn't modest; if he really did this, he's extremely loaded, with balls of steel. Even his guaranteed stop-loss wouldn't have prevented a real mess is his prediction went against him.

Now, we can all do the math and work out that my friend 'in just 8 hours' made £45,500 TAX FREE !!

No he didn't. Tax-free yes, but your friend's transaction charge (assuming he really made the bet) is in his spread. He likely paid significantly more than he would have to a stockbroker.

'Rumour has it Kraft will come back with another (higher) offer. Worth a punt? Maybe!'

maybe not; Reuters (Howley/Erman) reported Cadbury, Kraft set for long haggle over price. If you want to hold your position, you should buy shares conventionally.

[KevinBloodyWilson]

Never been one to consider investing in the stock market, it was always (as i thought) a little bit of a gamble with my hard earned money.

Yes, not for nothing does the FSA consider spread betting to be gambling; it's tax-free because the FSA think there'll be more losers than winners.

He proceded to tell me that he had an account with the British firm (ing)

Your friend is probably loaded

He thought it a good idea to 'go long' with Cadburys and placed a modest £100 on every point they went above the spread.

This isn't modest; if he really did this, he's extremely loaded, with balls of steel. Even his guaranteed stop-loss wouldn't have prevented a real mess is his prediction went against him.

Now, we can all do the math and work out that my friend 'in just 8 hours' made £45,500 TAX FREE !!

No he didn't. Tax-free yes, but your friend's transaction charge (assuming he really made the bet) is in his spread. He likely paid significantly more than he would have to a stockbroker.

'Rumour has it Kraft will come back with another (higher) offer. Worth a punt? Maybe!'

maybe not; Reuters (Howley/Erman) reported Cadbury, Kraft set for long haggle over price. If you want to hold your position, you should buy shares conventionally.

Exactly right. The anxiety of that trade would have killed me for sure, my balls are not made of steel.

Jesus this quote limit is a monster pain in the ass.