[Holding long term positions using spread bets]

Thanks, I think I've got that, but just to be clear, given the formula in the link

 

Size for spread bets means size of bet

Size × closing price × LIBOR +/- 2.5% ÷ 365

 

So if I have a spread bet on say the FSTE 100, which had a value of 7500,

If my bet size was 10, and the LIBOR is 2%

If I keep that open past 10pm then my daily interest would be

 

10 * 7500 x (2 + 2.5) / 365 = £9.25 per day.

 

 

OK, got that I think, so what are the %'s listed in
https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-shares-spread-bet-product-details

 

Specifically these ones; which imply you expect some bets to be held for months, but given the daily interest that doesn't seem  to be a good strategy?

 

[Holding long term positions using spread bets]

Hi

 

I want to hold a number of stocks and ETF's long term, many of these are on the NASDAQ.

If I buy the shares directly via the share dealing account, then there are large exchange rate fees (and I believe I will be paying tax on any gains).
So I'm looking at using spread bets to achieve this goal, from what I understand their is no tax, and the exchange rate issues seems to be just factored into the spread.

 

What I would like to know, is there a down side to holding spread bet positions long term?

 

Your docs suggest there is interest due for holding long term positions, but it’s unclear how this works.
https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-shares-spread-bet-product-details

Are these %'s per trade, per year, per day, per 3/6/9 month interval?
Do they get worked out automatically as I hold a position for longer or do I need to make some selection when creating a spread betting position?

 

Thanks.