[kimchi]

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Spreadbetting isn't really suitable for holding more than 5 months or so.


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i understand the concept, but if shouldnt it be more based on whether long term the position will make you more by leveraging than the libor cost+opp cost of tying up money?


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A $20k account fully leveraged 10x will attract an overnight financing of approx $35-40 per day on long positions, or will pay you interest of around $22 per day on short positions.

If you have a mix of long/short positions, then the cost of financing will be somewhat offset. It's also worth having 2 SB accounts. Firstly if one platform goes down (happens more often than you think) and you desperately want to buy/sell - you have a second option. Secondly, some brokers charge/pay LIBOR +/- 2% for long/short positions while others have different structures.

At the very least, you can go with the expensive finance broker for shorts and the cheap finance broker for longs. It will help cut down the juice.

Also, many brokers have (had?) "sign-up bonuses". Make sure you whore them all [img]/images/graemlins/cool.gif[/img]