RE: Roydon129 Aug 2018 23:46
Well said, George123!
Some of those cmc companies out there are pure ripoff. Why is that? Because they instantly counter your position if there is money to be earned.
Thats if you work with substantial 10k gbp x 9ish leverage.
Like in a call center they employ guys in their boiler room, watching large bets coming in - and work against you!
Totally unethical IMO.
There are proven cases where cmc contacted befriended broker houses to help them cause a little wobble at a share.
I have several friends who only work with real trading accounts and only work with index (Dow, Dax, Ftse) and currencies (usually Dollar-Euro) as well as gold and silver.
Many times they were swearing, saying that single stocks are exposed to manipulation.
I for one still stay with stocks, as I like the story around it (plus I like those sudden 30% ups or downs).
If you dont have access to full broker account where you sell short (actual/physical) shares, then another good option IMO are equity warrants.
Take a look around and you'll see that Barclays, Hsbc, & Co are covering all large cap shares with warrants.
Now that KAZ has fallen out the sky..., there must be thousads of cheap (long) CALL equity-warrants out there.
For instance one based on 900p for KAZ with a remaining three years transit time.
One could snap them up in case the Sp actually goes above 560p. If it goes anywhere near 600 or 700p, you'd hold a huge profit.
Or work the other way: Bearish.
Put-warrants are quite expensive right now after this lunatic drop.
But if 485 and 474o is breached again, then KAZ could easily tank till 430. 415 and 300ish.
All one needs is a decent transit time of 3-5 years. (I wouldnt work with 1 year warrant zombies that you cannot sit out.)
No advice meant of course.