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[RT] Spread Betting



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If this is more or less an English concept, then I 
appreciate that few on this list will be interested, but I am just starting an 
investigation into the subject and wondered whether or not anyone on RT had any 
experience.
 
Clearly on fast and volatile markets the spread 
would be far too great to consider on a day trading basis, but for position 
play, with guaranteed stops it must be something worth looking 
at.   Some stocks might be good candidates, others not so.   
Superficially, the much more slow moving bonds would make the instrument a 
possible candidate - depending of course on the actual spread 
quoted.
 
In general, it is an interesting idea since the 
profits are not subject to tax (well, in the UK anyway) and there are no 
commissions to pay, as such, it is just the spread quoted and the equivalent of 
slippage on the entry.   You can have electronic order entry, I 
understand.  Anyway, it may not turn out to be practical, but if it can be 
used to execute orders successfully, then the fiscal advantages would be 
tremendous i.e. no declarations or income tax to pay and the firm pays the 
'betting tax' within their quoted spread.  Sounds good, but it is a 
question of the buts...
 
If this is not a subject for the list, do contact 
me privately, if you have experience.   I will certainly come back 
when I learn more.
 
Have a good weekend
 
Bill Eykyn






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