Tradefair Spread Betting

paulw19

has anybody used this in the past?

im assuming that there is no time limit on how long u can hold positions? i would be looking to bet on the ft100 in case people are wondering, so for example i place a bet of £10 per index point (at 3900 today) and hold this until i decide to close my position (at say 4100 in a month - just an example, not a prediction!). in this case i would be looking at £2,000 profit on the deal.

also are there any fees involved or are they looking to make profit simply through the spread?

thanks

DaveLy

With tradefair you'll need an IMR (initial margin requirement) of 150* your stake. The IMR it shows is 30-150. (the number 30 is the automatic stop loss)

£10 per point, starting at 3900. You'll need £1500 (£10*150) in your account minimum.

If you deposited £1500, they'll reserve 20% of your balance (£300) - part of the small print
Then factor in the 30 IMR (£10*30=£300) auto stop loss.

Therefore, if the FTSE drops to 3810 you'll end with £600 in your account (£900 loss).
But it might be a sharper drop (i.e. 5 points drop below the automatic stop), so say £950 loss.

paulw19

thanks for your help dave

knowing that, ill probably factor my bets down a little bit, not due to lack of confidence in my bets but due to lack of funds! currently experiencing the old 'asset rich cash poor' dilemma!

by reducing my bet to £2 per point, does that mean that the auto stop loss will be increased if i deposited the same amount of £1500? the market is quite volatile right now and i dont want my trade to be automatically stopped when there is potential for rebound after falling. i would prefer an auto stop around the 3600 as i dont expect it (fingers crossed ha!) to drop this low again, and want to experience the likely upside of over 4000 in the near future.

is there anything else i should be aware of?

DaveLy

And the lowest the FTSE has been in the last year... 3,460, in which case, at the current price of 3900 you'd lose £4.4k at £10pp!

Spread betting is gambling. Just flip a coin on whether you'll double up or lose it all. However the spread betting company has the advantage because most people don't know when to walk away. That is the addiction of it and why they make alot of money

cepheus

Providing it is the FTSE rolling daily (and not one of the FTSE dated futures) there is no time limit. There is a small cost of carry on long positions overnight as with all spread betters (I think it is LIBOR+1% for Tradefair. reduce to £2 per point and the margin should be one fifth of £10 per point.

Tradefair gives you £75 for joining though the right process if you deposit £75
http://promo.tradefair.com/?agentid=1451
and something for someone giving you a referral