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Spread betting without leverage

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Guest MrT

Hi. Does anybody know if it is possible to spread bet without leverage (so I could keep my position without overnight 'borrowing' costs)? Thanks.

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Not possible to the best of my knowledge.  You might as well just buy and sell shares/ETFs.

Edited by dmedin

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Guest Mr T,

There will always be the element of leverage when spread betting. You are putting up margin for a position where you have not used the entire capital required. This is leverage. Even if you use the minimum margin requirements, it is still leverage. 

Therefore if you keep you position overnight then there will be costs/charges I am afraid. It would be great if there was not but that is the way it is. IG need to maximise their profits. 

I am someone who keeps their positions open for weeks and months and I pay IG a lot of charges but it is when I am trading with the direction of the trend (which is strong) and so the returns far outweigh any daily charges. Where this does not work is where the markets are trending sideways or against the direction of your position then you must absolutely via your stop losses exit and not pay the overnight costs/charges. 

For me as someone who uses IG's spread betting platform the only way to trade is to trade in the direction of the trend and trade the strongest trending assets. Anything else will lose you money unless you are a professional trader and an expert in trading. If you have mastered trading which very few have then any other trading style or strategy is not going to work for Spread Betting in my personal opinion. 

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On 08/09/2019 at 09:37, Guest MrT said:

Hi. Does anybody know if it is possible to spread bet without leverage (so I could keep my position without overnight 'borrowing' costs)? Thanks.

The futures or forwards markets are designed specifically for holding trades longer term and do not incur overnight funding charges but do have a larger spread which must be repaid every time the contract is rolled over (usually every 3 months).

To find if futures or forwards are offered for the market you are looking at check for a dropdown box next to the title, see pic below.

image.png.46fa7879883fd2ba641001ad82e811ac.png

  

 

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7 hours ago, TrendFollower said:

 

Therefore if you keep you position overnight then there will be costs/charges I am afraid. It would be great if there was not but that is the way it is. IG need to maximise their profits. 

 

😂😂😂 This place is comedy gold

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lol trading futures avoids the overnight charges but it is hardly trading without leverage.

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    • Hi everyone,  so, those of you following my FTSE - Daily Trades thread may know, I'm looking for new strategies to tackle the market. Was starting to think about this today and made a few thoughts. First one I came up with in the process is the following and utilises 'Andrew's Pitchfork' a rather odd name for a simple principle.   Thought Process I was going back to the basics and starting to think about the fundamentals of trading: Buy low and sell high. Or go short high, and buy back low later. So the key of my new strategy has to somewhat depended on these fundamental trading principles. Next I was thinking, looking at a chart, in what region can the price considered to be "low" and in what region would I consider it to be "high". I was looking at a 5min chart and looking at the whole day. I was drawing one line at the low of day, one line at the high of day, those are obviously the extremes where everyone can agree prices are low / high. 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    • https://www.home.saxo/insights/content-hub/articles/2019/10/17/emerging-market-stocks-just-break-out-of-a-20-month-downtrend
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