Most economical way to short a market over 1-2 month time range

[Billbot]

As the title suggest, I'm trying to figure out the best way to short a market (SPY or QQQ) over about a 1-2 month range or maybe longer.  Most of the inverse ETF's I have found generally reset every day so decay over time and there are daily charges with spreadbetting (although offset by base rate, but still, not nothing). Any ideas?

[ItsAlex]

You can go short futures via spread betting (US Tech 100/US 500), you don't pay daily charges that way since they are baked in the initial spread that is larger. If you are holding longer past expiry make sure you have "Roll over enabled" in your IG Account (it's under Settings>Rollovers).

[Billbot]

Great. Thanks. Will try that

[AndaIG]

Hi @Billbot

If you looking to work out what is cheaper between the DFB and future you can use the following formula: 

Futures spread - Spot spread / (2.5% x spot price/360 )

E.g. on 1GBP per point position on US Tech 100 

3-2 / (2.5% x 13489/360) = 1.068

Therefore if you are holding the position for longer than a day it would be cheaper to trade the futures contract. 

All the best, 

Anda

[Billbot]

Thanks Anda.

I thought the overnight fee was 2.5% minus the base rate if short or + base rate if long.  Maybe I have missed something somewhere