Spread Betting - No Fees, No Commissions, Free Charts and Live Prices.
Spread Bet on Indices, Forex, Commodities, Shares and more. For details see Financial Spreads.
Daily Rolling Contracts vs Futures
When trading Futures Spread Bets, the spread is typically wider than for the more immediate Rolling Daily quote. This allows the spread betting companies to protect themselves over the added uncertainty over a longer period of time.
There are no commissions or brokers fees on a futures trade. If the market moves into a profit paying position for you then you simply receive the profits as with an ordinary spread bet.
In contrast, Rolling Daily spreads usually employ narrower spreads than a futures bet because the market makers have more immediate knowledge about potential movements. This lowers risk and so the spreads can be narrower.
When you ĎRollí a bet into the next day you naturally retain the price of your initial trade. Therefore, if you continued the bet for an extended period of time you will maintain the same spread potentially to the same point in time as with a futures bet, thus creating the same level of uncertainty.
This is accounted for in a different way, however; as a series of small overnight financing fees proportional to your stake size. Essentially itís a small overnight interest charge on your investment. The fee is often small compared to the value of your trade but if you roll the bet for a longer period then the individual charges do add up.
On the other hand, if you Sell a market via a Rolling spread bet then some of the companies will actually pay you a similar overnight financing fee.
If you open and close your trade on the same day, like many investors do, then there is no overnight charge.
As a rough rule, trades that you want to keep open for periods of a month or longer may be cheaper with a futures contract. For short term trades investors may be better off with a Rolling spread bet.
User Questions and Answers on Spread Betting Markets
'Financial Spread Betting Markets' last update by R Thomas, 20-Feb-2017
UK Spread Betting - last update: 20-Feb-2017
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Why Spread Bet - last update: 20-Feb-2017
A quick guide to spread betting and where to spread bet. This guide covers tax free* investments, trading with no brokers' fees or commissions. The two-way trading that makes...read more.
Spread Betting Emails - last update: 20-Feb-2017
A free spread betting newsletter with the latest offers and where to find narrow spreads. The email also covers which companies are...read more.
Spread Betting History - last update: 20-Feb-2017
In 1974, financial spread betting was conceived by stockbroker Stuart Wheeler, as a way of speculating on gold prices without the expense or difficulty of purchasing gold. Wheeler introduced...read more.
This page: 'Financial Spread Betting Markets'
The most popular trade though is a Rolling Daily Contract or Rolling Daily spread bet. These are designed as short terms trades. If they are not closed at the end of the day they simply rollover to the next day for...go to top.
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