How I started Spread Betting
The Spread Betting Trading Centre conducted an interview in July 2007 with Steve Brown, who is an experienced spread better with over 2 years experience. Mr. Brown discusses his experiences, tips, suggestions and methods he uses for spread betting.
Spread Betting Trading Centre: When did you start spread betting? Do you remember what your first bet was on?
Steve Brown: If I recall correctly I first entered into the fray in June 2005 with a £5 per point up bet on Avocet mining
Spread Betting Trading Centre: What first attracted you to spread betting and what keeps you betting?
Steve Brown: The initial attraction was the tax free factor followed closely by the small amount of margin required to hold a position in a share. Elaborating a little more, I now predominantly choose to spread bet equities over holding physical equities due to capital requirements. I find that it's almost always easier to open and close positions far faster than using a traditional online dealing platform. Although losses can't be utilised as an end of year tax advantage the whole concept of tax free gains is far more important to me in terms of peace of mind that there are no declarations to be made and all the paperwork that goes with it. To date this is why I keep spreading betting.
Spread Betting Trading Centre: What do you use spread betting for - hedging short-term deals, capital gain, etc?
Steve Brown: Put simply I look for short term capital gains (anywhere between one and 6 months). Every now and again when I scalp a position I may open a small down bet to negate any erosion of profits on a particular share whilst I consider basic technicalities, for example resistance and support levels.
Spread Betting Trading Centre: How often do you check and/or change your bets and why?
Steve Brown: I check my account daily and when I am not committed else where tend to have my account open and running right throughout the day. I've seen and experienced wild volatility in the markets over the years and I like to be ready to pounce immediately in order to close/open bets.
Page 1 - How I started Spread Betting Page 2 - Don't forget the Spread Betting Stop Losses Page 3 - I've made a few Spread Bet mistakes Page 4 - Some words of Spread Betting wisdom