Spread betting group ig to trim costs to build
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My advice would be worthless. If you want to make money here's how. Open a demo account, with a similar amount of funding to what you would have in a real account. Review what you already know about trading strategies and pick one that you think you understand.
Research this and make sure that you know all of the details. Does it apply to all markets? Does it suit short term or long term trading? Why do you think that it would give you an edge? Write the whole plan down - preferably with a checklist of all conditions that need to be in place before you take a trade. Start trading it with the demo account. Keep doing that for months if you need to until you always stick to your plan.
Review the results. Did you stick to the plan? Did you make enough demo profit for it to be worth your while? Keep going with this until you are sure, then start with a small trading account and see if you can still stick to the plan, and make money. As you succeed you can start increasing trade size or adding other strategies but slowly. Remember that the reason for doing this is to make money. Big wins are for adrenalin junkies. Steady consistent wins are for millionaires.
For less liquid shares such as AIM shares and less known commodities this cost is likely to be greater. But I think the charges can quickly mount up with guaranteed stops and rollovers…. This interest is known as the overnight financing charge and is charged on long positions. This interest is usually charged on the entire value of your position, irrespective of how much you have in your account.
Your trade size will then determine how much you make or lose per point movement. So as we said if you take a daily period bet on a share you will have a funding charge reflected on your account each night if you hold the position after pm. This financing charge can be payable on either the full trade or the difference between the total value of any trade and the margin deposited although usually as we have mentioned above it is charged on the entire value of your position.
Typically this financing charge only applies on daily trades which are rolled overnight. In normal circumstances, customers pay this financing charge on long positions but receive it on short positions. For short term traders despite the funding charge due to the tighter spread this is normally a more cost effective time period.
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