RE: ISA vs. Spread Bet21 Mar 2021 11:40
‘The example I gave at the start of this thread, is a fairly comfortable spread bet position, that is, £13.5k committed for you 25% margin payment, with £6.5k buffer to cover fluctuations in share price.’
Just 6.5k to cover a £200 a point spreadbet? So only covering 32.5p movement? Last week had a high of 279 and a low of 240 = 39p volatility. You’d have been blown out of the water. Fairly uncomfortable if you ask me, but if you’ve got balls of titanium, go for it...
I use spreadbets as cheeky additions to positions but they can backfire. I had some pre vaccinegate that were robbed from me, but I was probably being a bit too greedy. You do need to take some care. I’ve got some open now, but with plenty cover as those MMs love to bend you over from time to time.