True cost of a spread bet?

Biggles

THENOX wrote: »

Numbers in this example retain 10 point spread but the further bet Aug/Sep/Dec the lower value.

Therefore my question: "why these quotes for FTSE have the same spread of 10 points but the values go down? -Do they have futuristic vision?"

No, the further the bet, the higher the value, due to the financing. Hence my confusion.

THENOX

Yeah, looks like I need to go back to the primary school and repeat some arithmetic as these numbers are indeed rising not falling.

Thanks guys for clarification on that vague by nature SBs and CFDs.

THE NOX

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Bear Baiting...

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Biggles

barrooo wrote: »

You do pay financing overnight if you SB on the spot market, however not on futures, like I say depends on timescale of trading which suits you better

That's true, Barrooo, the rolling daily bets (unlike the 'traditional' spread bets) are closed each night and reopened for the next day which is, effectively, a financing charge.

luckystrike23

for spread betting questions and answers go here

http://www.financial-spread-betting.com/Spread-trading-faqs.html

Hopefully you will find it useful :beer: